0 likes27 views

ChatGPT inventor set to receive $10bn as OpenAI shifts from non-profit status

September 27, 2024

Sam Altman, the founder of ChatGPT-maker OpenAI, is poised to receive more than $10bn (£7.5bn) as the company prepares to abandon its long-standing non-profit status.

OpenAI is considering granting Altman a 7% stake as it raises funds at a valuation of around $150bn.

This move would make Altman’s stake worth approximately $10.5bn. OpenAI, originally founded as a non-profit in 2015 by Altman and other tech executives, including Elon Musk, aimed to make its technology “open source.” However, with growing commercial interest, especially from tech giants like Microsoft, the company has shifted towards a for-profit model, albeit still controlled by a non-profit parent.

As OpenAI seeks to raise significant funding to advance its AI systems, the company is considering becoming a public benefit corporation, which would allow it to generate profits while remaining focused on societal benefits. Altman, already a billionaire through investments in companies such as Stripe and Reddit, would see his net worth increase dramatically with the stake.

Elon Musk, who left OpenAI in 2018 following disputes with Altman and other executives, criticised the shift, stating on X: “You can’t just convert a non-profit 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 companies, especially those that grow quickly.”

OpenAI remains committed to its mission of building AI that benefits everyone, and despite the changes, the non-profit arm of the organisation will continue to exist.