Altman denies major equity stake in OpenAI amid for-profit transition
27 Sep 2024
OpenAI's CEO, Sam Altman, has dismissed rumors of him acquiring a substantial equity stake in the company.
During an internal meeting on Thursday, he stated that such information was "just not true."
This clarification came in response to investor concerns about Altman not holding any equity in the artificial intelligence firm he co-founded nearly nine years ago.
OpenAI board discusses CEO's equity compensation
Board deliberations
Bret Taylor, the Chairman of OpenAI, confirmed to CNBC that while the board has discussed whether it would be beneficial for Altman to be compensated with equity, no specific figures or decisions have been made.
This discussion follows the board's consideration of restructuring OpenAI into a for-profit entity. If this change occurs, the non-profit segment will continue as a separate entity.
As part of the restructuring, Altman was rumored to receive a 7% equity stake in the ChatGPT maker.
OpenAI faces executive departures amid restructuring talks
Leadership changes
As the board deliberates on OpenAI's future, the company is experiencing a wave of executive departures.
On Wednesday, three top executives including Chief Technology Officer Mira Murati and research heads Bob McGrew and Barret Zoph announced their exits.
However, Altman has stated that these departures are unrelated to potential restructuring plans and are instead about "people being ready for new chapters of their lives and a new generation of leadership."
OpenAI seeks funding at $150 billion valuation
Funding pursuit
OpenAI, backed by Microsoft, is currently seeking funding that would value the company at over $150 billion.
Thrive Capital is leading this round with a planned investment of $1 billion, and Tiger Global also intends to participate.
Despite its rapid growth since launching ChatGPT in late 2022, OpenAI has faced controversies and concerns about its fast-paced expansion potentially compromising safety.
