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OpenAI top boss reportedly says company could become benefit corporation

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  • Sam Altman, the chief executive of Microsoft-backed (NASDAQ:MSFT) OpenAI, has told some shareholders that the company is considering changing its governance structure to a for-profit business, The Information reported on Friday, citing a person who heard the comments.
  • According to the person, the artificial intelligence (AI) startup’s non-profit board would not control the new structure, adding that one possible scenario being considered was a for-profit benefit corporation akin to the likes of Amazon-backed (AMZN) Anthropic and Elon Musk’s xAI.
  • OpenAI and Microsoft (MSFT) did not immediately respond to requests for comment from Seeking Alpha.
  • The Information earlier this week said that OpenAI’s annualized revenue had more than doubled from last year to hit $3.4B, citing comments from Altman.
  • Notably, billionaire businessman Elon Musk in March had sued OpenAI and two of its co-founders, including Altman, claiming that they had abandoned their original mission and chosen profits over benefiting humanity. Musk reportedly dropped the lawsuit on Tuesday.
  • OpenAI was also in the spotlight this week after announcing a partnership with tech giant Apple (AAPL) to integrate ChatGPT into its products.

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