OpenAI weighs shift to for-profit structure as it finalizes funding deal
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OpenAI's board is continuing to consider restructuring the company in ways that might change its current control by a non-profit organization, but no final plan has been adopted, according to a source familiar with the matter.
Why it matters: As Axios reported last November, the ChatGPT maker began weighing governance changes in the aftermath of the boardroom battle that saw CEO Sam Altman fired and then rehired in the course of a week.
The big picture: OpenAI is close to finalizing a new investment round reported to be around $6.5 billion, which would make it the largest venture capital round of all time, per Axios' Dan Primack.
- The company also announced key executive departures Wednesday, including that of CTO Mira Murati, who briefly served as CEO during last autumn's turmoil.
Between the lines: One provision in the funding agreement, which is not yet finalized, allows investors to ask for money back if the governance changes don't happen within two years, according to the source.
- Separately, per the source, the board is also considering whether to award equity to Altman, who does not now have a stake in OpenAI.
What they're saying: "We remain focused on building AI that benefits everyone and, as we've previously shared, 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 told Axios.
Driving the news: Recent reports by Reuters, Bloomberg and the Wall Street Journal have suggested changes at OpenAI are imminent, with one likely scenario involving the company shifting to a public benefit corporation structure.
This is a breaking news story and will be updated.
