 "Is Open AI junking its non-profit model for a for-profit one?")
OpenAI is reportedly planning to restructure itself into a “for-profit business” as it is discussing giving Chief Executive Officer Sam Altman a 7 per cent equity stake in the company. Sources close to the company told Bloomberg that the AI company is considering becoming a public benefit corporation. This would mark a major shift since this is the first time Altman is being offered ownership of the startup.
The company is now looking towards, not only helping society but is also planning to make a profit out of it. One of the sources who asked to remain anonymous stated that the transition is under discussion and a timeline has not been determined as of now. In a separate statement, a spokesperson from the company maintained that OpenAI remains “focused on building AI that benefits everyone,” adding, “The nonprofit is core to our mission and will continue to exist.”
The report of the shift is emerging against the backdrop of an exodus of senior managers. On Wednesday, Mira Murati announced that she is leaving the company, in a surprise move that marks the latest high-profile departure from the startup. Murati’s decision came months after the company suddenly fired and then rehired Altman. The tech giant has been in a state of influx as it loses multiple managers and shifts the structure of some of its teams.
Murati departs from Open AI
On Wednesday, Open AI’s Chief Technology Officer Mira Murati announced her departure from the company. In a statement on X, formerly known as Twitter, Murati stated that she was “stepping away because I want to create the time and space to do my own exploration.”
In response to Murati’s tweet, Altman expressed gratitude for her contribution to the company. “It’s hard to overstate how much Mira has meant to OpenAI, our mission, and to us all personally.” In a separate statement, Altman stated that Murati told him about the resignation on the morning she issued a public statement.
I shared the following note with the OpenAI team today. pic.twitter.com/nsZ4khI06P
— Mira Murati (@miramurati) September 25, 2024
Impact Shorts
More ShortsAltman also stated that OpenAI’s chief research officer, Bob McGrew, and a research VP, Barret Zoph, left the company as well. “I also want to share that Bob and Barret have decided to depart OpenAI. Mira, Bob, and Barret made these decisions independently of each other and amicably, but the timing of Mira’s decision was such that it made sense to now do this all at once so that we can work together for a smooth handover to the next generation of leadership,” Altman wrote on X.
I replied with this. Mira, thank you for everything.
— Sam Altman (@sama) September 25, 2024
It’s hard to overstate how much Mira has meant to OpenAI, our mission, and to us all personally.
I feel tremendous gratitude towards her for what she has helped us build and accomplish, but I most of all feel personal…
OpenAI was founded back in 2015 as a nonprofit research organisation. In 2019, the company created a for-profit subsidiary to help fund the high costs of the AI model development. This month, Bloomberg reported that OpenAI is currently working to raise $6.5 billion at a $150 billion valuation, making it one of the most valuable startups in the world.
With inputs from agencies.
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