OpenAI is preparing for a significant restructuring, with Sam Altman receiving shares for the first time, transforming into a for-profit benefit corporation.
The change aims to attract investors, with new governance dynamics and implications for the management of artificial intelligence. Let’s see all the details below.
Sam Altman will receive shares for the first time, marking a new phase of growth for the company OpenAI
OpenAI, l’azienda famosa per lo sviluppo di ChatGPT, is about to enter a new phase of its corporate history. On September 25, 2023, it was announced that OpenAI is planning a restructuring that will transform it into a for-profit benefit corporation.
Therefore no longer under the direct control of its non-profit board of directors. This change aims to make the company more attractive to investors.
Ensuring at the same time that the original mission, aimed at creating a‘beneficial artificial intelligence, remains at the center of its operations.
The reorganization foresees that the non-profit division of OpenAI will continue to exist, but with a minority stake in the new for-profit entity.
One of the most immediate effects of this transformation will be the inclusion of the CEO, Sam Altman, among the shareholders of the company for the first time.
According to some sources close to the matter, OpenAI’s valuation could reach 150 billion dollars after the restructuring. This is mainly due to the overwhelming success of ChatGPT and the growing global focus on artificial intelligence.
The entry of Altman as a shareholder marks an important change in the governance of the company.
OpenAI, founded in 2015 as a non-profit AI research organization, has always maintained an atypical corporate structure to ensure ethical control over the evolution of its artificial intelligence.
The decision to remove the control of the non-profit board over the for-profit operations of the company aims to pave the way for greater investments.
However, this choice has raised some concerns in the AI security community. In particular, there are fears that the new structure could decrease the level of responsibility in managing long-term risks associated with artificial intelligence.
Implications for investors and governance
The transformation of OpenAI’s governance comes at a delicate moment for the company. Over the past year, there have indeed been significant changes at the top of the organization.
Mira Murati, long-time Chief Technology Officer, recently announced her departure, while Greg Brockman, the company’s president, is currently on leave.
These changes have fueled speculations about the future of OpenAI’s leadership and the direction the company will take in its new setup.
In any case, the new corporate structure that OpenAI intends to adopt mirrors that of other companies like Anthropic and xAI by Elon Musk, both registered as benefit corporations.
This type of for-profit entity still maintains a strong commitment to social and environmental responsibility, balancing profit with ethical goals.
According to OpenAI, the transition to a benefit corporation represents a strategic move to reconcile the need to attract capital with the goal of developing safe and accessible AI for the common good.
The modification of the governance will be submitted for approval to the non-profit board of directors of OpenAI, composed of nine members.
This body has been recently renewed with the inclusion of executives from various areas of the technology sector.
Among these stands out Bret Taylor, former co-CEO of Salesforce, who currently chairs the board of OpenAI. If approved, the new structure will allow OpenAI to operate similarly to a typical startup.
An approach that many investors welcome, considering the enormous growth potential in the AI sector.
Challenges and opportunities for the future
Despite the support from numerous investors, the removal of the no-profit control raises questions about the sustainability of OpenAI’s mission.
The company, which has made AI safety one of its pillars, will have to demonstrate that it can maintain ethical and governance standards in the absence of direct oversight from the non-profit entity.
At the beginning of the year, OpenAI dissolved its super alignment team. This team was responsible for monitoring the long-term risks associated with the development of a safe general artificial intelligence (AGI).
This has raised concerns about the company’s ability to continue managing the rapid progress of AI responsibly.
Altman has stated in the past that he did not take an equity stake in OpenAI to ensure the independence of the board of directors.
However, with the new structure, this balance will change. It remains to be seen how much capital will be allocated to Altman and how this will affect the internal dynamics of the company.
In other words, OpenAI is at a crucial moment in its evolution. The restructuring into a for-profit benefit corporation could represent a step forward towards greater competitiveness and greater access to investments.
Even though all this raises questions about the company’s ability to maintain its original mission of ethical AI development.
