OpenAI is reportedly planning a significant restructure that would transform it into a for-profit benefit corporation—similar to competitors like Anthropic or X.ai. This move, reported by Reuters citing anonymous sources, marks a complete departure from the company's founding ethos and current structure where a non-profit board oversees for-profit operations.
Under the proposed restructuring, the nonprofit OpenAI will continue to exist and maintain a minority stake in the for-profit company, however it will no longer oversee its operations. This change is designed to enhance OpenAI’s appeal to investors by removing return caps and offering greater equity opportunities.
Additionally, CEO Sam Altman would receive equity in the newly formed for-profit entity, which is reportedly valued at $150 billion. The extent of his equity in the new structure is yet to be disclosed. Sources indicated that this move aims to attract significant investment by providing Altman and other stakeholders with appropriate financial incentives.
“We remain focused on building AI that benefits everyone, and we’re working with our board to ensure that we’re best positioned to succeed in our mission. The nonprofit is core to our mission and will continue to exist,” an OpenAI spokesperson said.
The restructuring details are still being finalized with legal counsel and shareholders, with no set completion timeline. However, OpenAI has already begun making significant changes. Last week, the company announced a shift in its AI governance approach, elevating the Safety and Security Committee to an independent board oversight body—a responsibility previously held by the non-profit board.
By adopting the for-profit benefit corporation model, OpenAI will resemble its rivals, balancing profit motives with social responsibility and sustainability. Investors have generally welcomed the shift toward a more conventional startup structure, although questions remain about the company’s commitment to its original mission of developing safe and beneficial artificial general intelligence.