Significant Restructuring at OpenAI: Non-Profit Status Abolished

OpenAI, the company behind the groundbreaking ChatGPT, is undergoing a significant restructuring. On Wednesday, three leading technical minds of the startup announced their resignation, including Chief Technology Officer Mira Murati. Murati often served as the public face of the company alongside Chief Executive Sam Altman. These departures are the latest in a series of personnel changes that mark a tumultuous year for OpenAI. On the same day, Reuters reported that OpenAI plans to shed its non-profit status and reorganize into a for-profit benefit corporation. This change will provide Altman with a substantial equity stake. Currently, OpenAI operates a for-profit branch that is controlled by a non-profit board – an unusual structure that has led to turbulence. In November of last year, Altman was dismissed by the board due to a loss of confidence but was reinstated after only five days. OpenAI is also in the midst of a major new funding round. The company aims to secure $6.5 billion in new investments, which would value it at approximately $150 billion. However, this round hinges on the successful restructuring, and it remains unclear whether the recent leadership changes will affect the outcome. Earlier departures this year include Chief Scientist and co-founder Ilya Sutskever, who founded his own startup, as well as co-founder John Schulman, who joined the rival AI firm Anthropic.