By Richard Lawler , a senior editor following news across tech, culture, policy, and entertainment. He joined The Verge in 2021 after several years

OpenAI’s for-profit switch could include equity for Sam Altman

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2024-09-26 02:30:10

By Richard Lawler , a senior editor following news across tech, culture, policy, and entertainment. He joined The Verge in 2021 after several years covering news at Engadget.

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 cofounder Elon Musk. But that’s reportedly set to change along with a massive new funding round that’s still being negotiated but could value the ChatGPT maker at more than $150 billion.

Now, Reuters cites unnamed sources saying that part of the new plan includes providing an equity stake to Altman for the first time, which Bloomberg reports could be about 7 percent.

Reuters sources said that in the new structure, OpenAI would proceed as a for-profit benefit corporation, like rival AI company Anthropic.