OpenAI is exploring a significant shift, considering granting CEO Sam Altman a 7% equity stake. This move would mark a pivotal change, as Altman would become the first owner of the AI startup. The company might also transition to a for-profit model, a decision that could impact its mission and operations.
The potential change involves OpenAI becoming a public benefit corporation. This status would require the company to generate profits while also contributing to societal welfare. The exact timeline for this transition remains unclear, as discussions are ongoing. A spokesperson for OpenAI stated that the nonprofit status is crucial to their mission, assuring that it will continue.
OpenAI faces challenges amidst these discussions, including the departure of several senior managers. Chief Technology Officer Mira Murati announced her resignation, adding to the company’s recent turmoil. This follows a period of significant changes, including the sudden firing and rehiring of Altman last year.
In a statement on X, Murati explained her decision to step away, citing a desire for personal exploration. Altman expressed gratitude for Murati’s contributions, acknowledging her immense impact on OpenAI and its mission.
Murati’s departure date is yet to be determined, with discussions ongoing about her replacement. She emphasized her commitment to ensuring a smooth transition, focusing on maintaining the company’s momentum.
Founded in 2015, OpenAI initially aimed to develop safe and beneficial AI. It established a for-profit subsidiary in 2019 to fund AI model development. The company has since attracted billions in investment, aiming to raise $6.5 billion at a $150 billion valuation this month.
Altman’s decision not to take equity was a hallmark of OpenAI’s nonprofit status. However, he has occasionally expressed a desire for equity, citing the constant inquiries about his financial status. Reuters reported on the company’s plans to restructure and grant Altman equity.
The news of Murati’s departure shocked many employees. The internal Slack channel saw numerous reactions, with employees expressing surprise and confusion.
Murati played a crucial role in OpenAI’s product releases, including ChatGPT and DALL-E. Her departure marks a significant loss for the company, affecting its future direction and operations.
This spring, Murati faced criticism for her comments in an interview with the Wall Street Journal. She expressed uncertainty about whether Sora, a text-to-video generator, was trained on user-generated videos from YouTube, Facebook, and Instagram. Such use would violate YouTube’s terms of service, YouTube CEO Neal Mohan later told Bloomberg.
After Altman’s departure, Murati rose to prominence as interim CEO. However, she soon joined a group advocating for Altman’s return.
Her exit is the latest executive departure at OpenAI following Altman’s firing and rehiring last year. Ilya Sutskever, the chief scientist, left in May. In August, co-founder Greg Brockman announced he would take a leave until year-end. Researcher John Schulman departed for AI rival Anthropic. Only two original founders remain: Altman and Wojciech Zaremba.
In her X post, Murati expressed gratitude for her time at OpenAI. “Together we’ve pushed the boundaries of scientific understanding in our quest to improve human well-being,” she wrote.
The company now employs about 1,700 people, more than double the 770 in late 2023.
Altman announced further management changes. In a memo to OpenAI, he posted to X on Wednesday, stating that Chief Research Officer Bob McGrew and Barret Zoph, a vice president of research, are leaving. Zoph worked on products like ChatGPT.
In his X post, Zoph said leaving was a “very difficult decision.” He plans to “explore new opportunities” outside the company.
“OpenAI is doing and will continue to do incredible work and I am very optimistic about the future trajectory of the company and will be rooting everybody on,” he wrote.
Altman also named six existing employees to report directly to him, including Matt Knight as chief information security officer.
“I have over the past year or so spent most of my time on the non-technical parts of our organization; I am now looking forward to spending most of my time on the technical and product parts of the company,” the CEO wrote, adding that there will be an all-hands meeting Thursday to answer employee questions.
“Leadership changes are a natural part of companies, especially companies that grow so quickly and are so demanding,” Altman wrote. “I obviously won’t pretend it’s natural for this one to be so abrupt, but we are not a normal company.”
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