OpenAI, the company behind ChatGPT, is reportedly planning a major restructuring of its core business to shift from a non-profit-controlled organization to a for-profit benefit corporation, according to sources familiar with the discussions. This move could make OpenAI more attractive to investors and provide a clearer path for growth, while still keeping a link to its non-profit origins.
The restructuring would involve the OpenAI non-profit retaining a minority stake in the newly structured for-profit entity. However, the for-profit company would no longer be fully governed by the non-profit board. This change has raised questions about how the company will balance its original mission of ensuring safe artificial intelligence (AI) development with its new investor-driven goals.
Founded in 2015 as a non-profit dedicated to advancing artificial intelligence in a safe and beneficial way, OpenAI later established a for-profit arm, OpenAI LP, in 2019 to secure funding from investors, including Microsoft. Since then, OpenAI has gained widespread recognition, particularly with the launch of ChatGPT in late 2022. ChatGPT quickly became one of the fastest-growing applications ever, amassing over 200 million weekly active users globally and igniting intense competition in the AI space.
With its success, OpenAI’s valuation has surged from $14 billion in 2021 to a projected $150 billion following the proposed restructuring. This remarkable growth has attracted big names in the investment world, including Thrive Capital and Apple, as OpenAI positions itself for future expansion.
The proposed restructuring comes amid a period of leadership turnover at OpenAI. Recently, Mira Murati, the company’s Chief Technology Officer, announced her departure, and President Greg Brockman has taken a leave of absence. Despite these changes, the company’s leadership remains committed to its vision.
Chief Executive Sam Altman, who has played a central role in OpenAI’s rise, is expected to receive equity for the first time under the new for-profit structure. The potential value of his equity stake could reach as high as $150 billion, reflecting the company’s meteoric valuation increase. Altman had previously chosen not to take an equity stake, citing the need for disinterested directors on the non-profit board and stating that he was more interested in the work than personal financial gain.
While the restructuring is expected to provide more flexibility for investors and streamline operations, it also raises concerns about how OpenAI will manage the risks associated with developing artificial general intelligence (AGI). AGI refers to AI systems that can perform tasks at or beyond the level of human intelligence. Historically, OpenAI’s governance structure, which gave the non-profit full control over the for-profit arm, was designed to ensure that the company’s mission of developing “safe AGI” remained a priority.
However, the shift away from non-profit control could lead to less oversight on AI safety measures, particularly as the company recently disbanded its Superalignment team, which focused on long-term risks related to AGI. This has raised concerns among AI safety advocates who fear that the drive for profitability may overshadow the company’s ethical obligations.
Despite these concerns, OpenAI has reaffirmed its commitment to developing AI that benefits society. A company spokesperson noted, “We remain focused on building AI that benefits everyone, and the non-profit will continue to play a key role in that mission.”
The restructuring would make OpenAI more closely resemble companies like Anthropic and Elon Musk’s xAI, which are structured as for-profit benefit corporations. This model allows companies to pursue profit while also adhering to social and ethical goals. In OpenAI’s case, it could enable the company to better compete in the fast-evolving AI market while continuing to promote responsible AI development.
This move is generally seen as positive by investors, many of whom have poured billions into the company. They hope that the new structure will allow OpenAI to operate more like a traditional startup, focusing on innovation, scalability, and delivering returns, while balancing the broader mission of AI safety and social responsibility.
The exact timeline for the restructuring remains unclear as OpenAI continues to work through the legal and governance details with shareholders. However, the potential shift represents a major turning point for the company, which could fundamentally alter how it operates and grows in the future.