OpenAI, the Silicon Valley giant behind ChatGPT, is abandoning its nonprofit roots in favor of a for-profit model. Founded in 2015 as a nonprofit, OpenAI once prided itself on pursuing “advanced digital intelligence” free from financial pressures. But that’s changing, with the board stepping back into a minority position and full control shifting to CEO Sam Altman.
The shift comes as the company is planning to raise $6.5 billion in new venture capital, boosting its valuation to $150 billion. The restructuring is aimed at attracting more investors, as “nonprofit” doesn’t appeal to those focused on financial returns.
The investment round is being led by Thrive Capital, according to Bloomberg, with other likely participants including Apple, Microsoft (OpenAI’s biggest backer), and Nvidia.
The biggest change?
Altman, who once refused equity out of passion for his work, could now gain a 7% stake, worth an estimated $10 billion—placing him among the world’s richest.
Despite the financial windfall, OpenAI faces internal turbulence. Three top executives—CTO Mira Murati, CRO Bob McGrew, and VP of Research Barrett Zoph—announced their departures this week. Their exits add to a growing list of resignations this year, with several engineers leaving earlier over concerns that OpenAI is prioritizing profit over safety.
The restructuring also echoes last year’s dramatic events, when the nonprofit board briefly ousted Altman, only to reinstate him after pressure from Microsoft, its largest investor.
