OPENAI LOOKS TO SHIFT AWAY FROM NONPROFIT ROOTS AND CONVERT ITSELF TO FOR-PROFIT COMPANY

OpenAI’s history as a nonprofit research institute that also sells commercial products like ChatGPT may be coming to an end as the San Francisco company looks to more fully convert itself into a for-profit corporation accountable to shareholders.

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The artificial intelligence company’s board is considering a decision that would change OpenAI into a public benefit corporation, according to a source familiar with the discussions who wasn’t authorized to speak publicly about them.

While OpenAI already has a for-profit division, where most of its staff works, it is controlled by a nonprofit board of directors whose mission is to help humanity. That would change if the company converts the core of its structure to a public benefit corporation, which is a type of corporate entity that is supposed to help society as well as turn a profit.

No final decision has been made by the board and the timing of the shift hasn’t been determined, the source said.

OpenAI’s CEO Sam Altman acknowledged in public remarks that the company is thinking about restructuring but said the departures of key executives the day before weren’t related.

Speaking at a tech conference in Italy, Altman mentioned that OpenAI has been considering an overhaul to get to the “next stage.” But he said it was not connected to the last week resignations of Chief Technology Officer Mira Murati and two other top leaders.

“OpenAI will be stronger for it as we are for all of our transitions,” Altman told the Italian Tech Week event in Turin. “I saw some stuff that this was, like, related to a restructure. That’s totally not true. Most of the stuff I saw was also just totally wrong,” he said without any more specificity.

“But we have been thinking about (a restructuring),” he added.

OpenAI said that it will still retain a nonprofit arm.