Sam Altman, the founder of ChatGPT maker OpenAI, is set to receive more than $10 billion (£7.5 billion) as the company prepares to give up its long-standing non-profit status.
OpenAI is considering giving Altman a 7% stake as it raises money at a valuation of about $150 billion.
The move would make Altman’s stake worth about $10.5 billion. OpenAI, originally founded as a nonprofit in 2015 by Altman and other tech executives including Elon Musk, aimed to “open source” its technology. However, growing commercial interest, especially from tech giants like Microsoft, has seen the company move to a for-profit model, even though it is still controlled by a non-profit organization.
As OpenAI seeks to raise significant funding to improve its AI systems, the company is considering becoming a public company, which would allow it to generate profits while continuing to focus on social benefits. Altman, who is already a billionaire through investments in companies like Stripe and Reddit, would see his net worth increase dramatically with the stakes.
Elon Musk, who left OpenAI in 2018 after disputes with Altman and other executives, criticized the shift, saying of X: “You can’t just turn a nonprofit into a for-profit. That is illegal.”
The potential changes at OpenAI come amid leadership turbulence, with several high-profile resignations, including Mira Murati, the company’s chief technology officer, and Ilya Sutskever, its chief scientist and co-founder. In a message to staff, Altman acknowledged the sudden nature of the leadership changes, calling them a “natural part of businesses, especially those that are growing rapidly.”
OpenAI remains committed to its mission to build AI that benefits everyone, and despite the changes, the organization’s nonprofit will continue.