ChatGPT maker OpenAI is undergoing a slew of changes, right from changing its corporate governance to giving a stake to founder Sam Altman and the CTO’s abrupt exit. Reuters was the first to report these changes in the Microsoft (MSFT)-backed startup, citing sources familiar with the matter.
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The artificial intelligence (AI) company is set to become a for-profit corporation to make it even more attractive to investors. Meanwhile, the company is in the process of raising new funding in the latest round that values it at $150 billion.
Non-Profit to For-Profit Shift
The proposed dramatic shift of becoming a for-profit organization would put OpenAI head-to-head with rival Anthropic. The original structure required the for-profit company to get the non-profit board’s approval before bringing about any significant changes. With the new structure, OpenAI will no longer be controlled by the non-profit board. Having said that, the non-profit entity will continue to hold a minority stake in the for-profit company.
The non-profit structure and its control over the actual working company were meant to keep a check on the safety and risks associated with the AI models being developed. Interestingly, the for-profit structure indicates that the company could issue equity stakes to its employees. As rumor has it, Altman is expected to receive a roughly 7% equity stake under the new for-profit structure.
Meanwhile, in an unexpected move, OpenAI’s CTO Mira Murati announced that she is leaving the company to have her own time to do exploration. At the same time, director Greg Brockman has also been on leave for quite some days.
What Is the Best AI Company to Invest In?
We used TipRanks’ Stock Comparison tool to see which AI company ranks well based on different parameters. As we can see, Microsoft, which has made significant investments in OpenAI, is one of the most powerful plays in the AI market, while other companies such as Meta Platforms (META), Nvidia (NVDA), and Alphabet (GOOGL) (GOOG) are also attractive AI bets.
