OpenAI describes its business structure as 'a partnership between our original Nonprofit and a new capped profit arm,' which has been a contributing factor in last year's short-lived board coup against CEO Sam Altman and a recent lawsuit by co-founder Elon Musk, revealing internal tensions largely centered around its unique governance model.
Part of the new plan includes providing an unspecified amount of equity to Altman for the first time, indicating a significant shift in OpenAI's governance and potential future direction as it seeks to become more appealing to investors.
The new structure would mean OpenAI will proceed as a for-profit benefit corporation, thus no longer being controlled by its non-profit board, potentially raising concerns about the balance between AI safety and profit motives.
With a major funding round in negotiations that could value OpenAI at over $150 billion, this shift underscores the company's ambitions and the ongoing turmoil within its executive ranks following governance changes.
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