OpenAI’s for-profit switch could include equity for Sam Altman

OpenAI is reportedly planning a significant change in its business structure, which could be finalized with a massive new funding round valuing the company at over $150 billion. The company currently operates as a partnership between a nonprofit and a capped profit arm, but this setup has led to internal conflicts, including a board coup against CEO Sam Altman and a lawsuit by cofounder Elon Musk. The new plan would see OpenAI become a for-profit benefit corporation, similar to rival AI company Anthropic. As part of this change, Altman would receive an unspecified amount of equity for the first time. The for-profit business would no longer be controlled by its nonprofit board and would become more attractive to investors. The nonprofit would maintain a minority ownership stake in the company. This shift in structure may raise concerns about OpenAI's approach to safety versus profits, particularly as the company develops AI models capable of reasoning. Altman had mentioned improving the company's governance structure in a letter last November, and this change appears to be part of that effort. The company has also seen several high-profile departures, including CTO Mira Murati, who announced her exit, and former chief scientist Ilya Sutskever, who separated from the company earlier this year. President Greg Brockman has also been on leave, adding to the changes within the company's leadership.