OpenAI boss to receive £8bn in shares as he seeks to ditch ‘not-for-profit’ status

OpenAI boss Sam Altman is set to become a billionaire thanks to plans to hand him an £8bn stake in the company.

The artificial intelligence (AI) startup behind ChatGPT is looking to become a for-profit company after years of being non-profit.

Now its objective will be to obtain benefits for its owners and not for a social cause.

The restructuring will mean co-founder and chief executive Altman will receive capital for the first time, and talks are underway to hand him a 7 per cent stake worth around £8bn, which will add to his estimated personal fortune. of £750 million.

OpenAI, which has around 1,700 employees, is looking to raise around £5bn in new investment, which would give the company a valuation of £112bn.

It is believed that the new structure will help attract investors. Microsoft has pumped in more than £7bn, in return for a 49 per cent ownership.

OpenAI said: “We remain focused on creating AI that benefits everyone and are working with our board to ensure we are in the best position to succeed.” The nonprofit is central to our mission and will continue.”

The reform comes at a time of big changes at the top. Chief Technology Officer Mira Murati is leaving after six and a half years.

Bob McGrew, director of research, and Barret Zoph, vice president of research, also recently resigned.

Last year, the board fired Altman, but he was rehired days later after a huge backlash. Only two of the 11 founders remain.

Altman said yesterday: ‘Leadership changes are a natural part of companies, especially companies that grow so fast and are so demanding… Obviously I won’t pretend that it’s natural for this one to be so abrupt, but we are not a normal company . .’

OpenAI was founded in 2015 with the goal of creating AI that would benefit society and gained notoriety in 2022 when Chat GPT was launched.

The software can pass exams and write poems, books and software code. It has the potential to generate billions of dollars for its creators and investors.