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OpenAI is officially triggering the switch from its unique non-profit/for-profit corporate structure into a strictly for-profit company that will likely catapult the AI startup’s growth.
The Big Picture: If you think OpenAI has a lot of money, influence, and power now, a for-profit designation will take the guardrails off the development of its systems — for better and worse.
The Rundown: OpenAI is seeing dollar signs… and it’s not about to let high-minded ideals get in the way.
- OpenAI has started the steps to become a for-profit benefit corporation (meaning it still needs to have a positive impact on society), similar to rivals xAI and Anthropic. But the process could take a couple of years.
- Under that structure, CEO Sam Altman will take equity in the company for the first time, which could net him $150 billion.
- It also gives potential investors a lot more upside, which is why the move is happening amid OpenAI raising a $6.5 billion round — the biggest VC raise ever.
- However, the non-profit arm will still exist and hold a minority stake in the larger for-profit business.
The Future: OpenAI purposely buried itself in a complicated corporate structure so that it would keep its mission of creating a “safe AGI that is broadly beneficial” as its north star. As a for-profit firm that’s no longer overseen by its non-profit board, that will likely no longer be the case. In likely related news, CTO Mira Murati, Chief Research Officer Bob McGrew, and VP of Research Barret Zoph all just announced their departures from the company. Expect even more to follow in the coming days.
Go Deeper: OpenAI cofounder and former chief scientist Ilya Sutskever definitely saw this coming from a mile away.
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