OpenAI is reportedly discussing giving CEO Sam Altman a 7% equity stake while restructuring the artificial-intelligence giant as a for-profit entity – even as several top executives head for the exits.
A 7% stake in Microsoft-backed OpenAI could soon be worth a whopping $10.5 billion for Altman, who had not previously taken an ownership position in the firm.
Bloomberg was first to report on the potential size of Altman’s stake, citing unnamed sources.
OpenAI is currently pursuing a $6.5 billion financing round led by Thrive Capital that would value it at $150 billion.
OpenAI is planning to restructure itself as a for-profit benefit corporation, which would mean that the non-profit board of directors that previously oversaw its operations would no longer be in control, according to multiple reports.
A for-profit benefit corporation is an entity that considers both societal impact and profit when making decisions. Elon Musk’s artificial intelligence startup xAI uses a similar structure.
OpenAI brass is still discussing the specifics of the restructuring and a final timeline has yet to be determined, according to Bloomberg. It’s also possible that the size of Altman’s equity stake could change or not materialize at all.
“We remain focused on building AI that benefits everyone, and we’re working with our board to ensure that we’re best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist,” an OpenAI spokesperson said in a statement.
The restructuring is under consideration during a period of turmoil at OpenAI.
Mira Murati, the company’s chief technology officer who had worked closely with Altman, abruptly announced her resignation on Wednesday just before the first reports on the firm’s potential for-profit move surfaced.
In a message to OpenAI staffers shared on X, Murati said she was “stepping away because I want to create the time and space to do my own exploration. For now, my primary focus is doing everything in my power to ensure a smooth transition, maintaining the momentum we’ve built.”
Murati’s departure reportedly came as a surprise to OpenAI employees, with some sharing a “WTF” emoji in response to her post on an internal Slack channel, according to Bloomberg.
Altman later confirmed that two other OpenAI executives – chief research officer Bob McGrew and another top researcher Barrett Zoph – were also leaving.
“Mira, Bob, and Barret made these decisions independently of each other and amicably, but the timing of Mira’s decision was such that it made sense to now do this all at once, so that we can work together for a smooth handover to the next generation of leadership,” Altman wrote on X.
Six current OpenAI executives will begin reporting to Altman directly following their exits, the CEO added.
“Leadership changes are a natural part of companies, especially companies that grow so quickly and are so demanding,” Altman added. “I obviously won’t pretend it’s natural for this one to be so abrupt, but we are not a normal company.”
Greg Brockman, OpenAI’s president and co-founder, said last month that he would take an extended leave of absence through the end of the year.
John Schulman, another co-founder, recently left for a gig at OpenAI rival Anthropic.
Elsewhere, co-founder Ilya Sutskever and researcher Jan Leike resigned in May after OpenAI dissolved its “Superalignment” team, which was responsible for ensuring the safe development of advanced AI.
