Microsoft-backed OpenAI is reportedly restructuring its core business model into a for-profit benefit corporation, shedding control from its non-profit board, according to Reuters.
This move, which could place the company’s valuation at $150 billion, will also grant CEO Sam Altman equity in the company for the first time. The restructuring comes amid significant leadership changes, including the departure of key executives.
Leadership Changes:
Mira Murati, OpenAI’s Chief Technology Officer, is the latest senior executive to announce her departure after six-and-a-half years at the company. Mira Murati briefly served as CEO when Sam Altman was fired by OpenAI’s board.
Ilya Sutskever, co-founder and chief scientist, left the company after playing a key role in orchestrating Altman’s dismissal. Sutskever has since co-founded Safe Superintelligence (SSI), raising $1 billion to develop safe AI systems.
Andrej Karpathy, another founding member, exited the company in July to launch an AI-integrated education platform, Eureka Labs.
John Schulman, co-founder, joined rival AI startup Anthropic. Meanwhile, co-founder and company president Greg Brockman has taken a sabbatical.
Notable Appointments:
Sarah Friar, former CEO of Nextdoor, was hired as OpenAI’s first chief financial officer.
Kevin Weil, who previously held roles at Twitter, Facebook, and Instagram, has been appointed as chief product officer.
Zico Kolter, professor and director of Carnegie Mellon University’s machine learning department, has joined OpenAI’s board and its safety and security committee.
Despite these internal changes, OpenAI remains a major player in the AI landscape, especially following its pivotal contributions with ChatGPT. The company’s restructuring is expected to strengthen its commercial position while addressing concerns around AI safety.
