Artificial Intelligence (AI) giant OpenAI is undergoing a major restructuring that will remove its major limiting non-profit tag. The company is notably pushing for profit, and its previous non-profit board will no longer control the entity once it is done. The conversations around restructuring have been ongoing for a while now, with no defined timeline on when the firm will complete it.
OpenAI, Sam Altman and Leadership Overhaul
One of the major people who will benefit from the company’s restructuring is its CEO, Sam Altman. As reported by Reuters, citing sources close to the restructuring, Altman will receive massive equity in the company. After restructuring, OpenAI may be worth as much as $150 billion. This valuation will make it one of the most valuable AI firms in the world.
While Sam Altman and the core founders have been building the company for long, it attained limelight when it launched ChatGPT in November 2022. Within a few months, the new chatbot recorded massive userbase as its use case spread widely.
Over the following months, OpenAI started charging for premium access to more applications linked to ChatGPT. This move triggered the backlash from co-founders like Elon Musk who decried a deviation from the original non-profit model. This ongoing restructuring will clear the firm to pursue business expansion the way it truly wants it.
Per the Reuters report, the company’s non-profit entity will still own a minority stake in the for-profit outfit. The whole restructuring plans comes amid a major shift in the firm’s leadership. CTO Mira Murati who served as interim CEO when Sam Altman was temporarily ousted last December has announced her departure.
Also OpenAI President Greg Brockman is on an indefinite leave. He announced this leave after the departure of former Chief Scientist Ilya Sustkever from the firm.
Innovation On Pace
Despite the abrupt changes the company is experiencing at the moment, OpenAI is still innovating the right way.
As reported earlier by Coingape, the company recently launched its ChatGPT voice mode. However, this product launch comes with restriction for users in key regions like the United Kingdom and European Union.
As one of the biggest beneficiaries of the incoming changes, Sam Altman may get more motivated to build on its best products. The company is looking to revolutionize different industries including video production. To do this, it has showcased the potentials of its video generation tool Sora.
With more investors capital likely to flow in in the coming months, it remains to be seen what products will emerge.
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