OpenAI’s chairman, Bret Taylor, recently stated that the company’s board is considering rewarding CEO Sam Altman with shares for the first time. However, no particular numbers or judgments have been reached. This represents a potential structural shift for OpenAI, as the company considers transforming its core business into a for-profit organization. Altman, who co-founded the business in 2015, has so far avoided taking shares in OpenAI in order to retain his objectivity as a director.
This conversation comes amid bigger changes inside OpenAI, including efforts to fund $6.5 billion and potentially restructure into a for-profit benefit corporation, which could lift its worth to as high as $150 billion.
The equity discussion coincides with OpenAI’s broader restructuring plans. OpenAI was founded in 2015 as a non-profit organization with the goal of prioritizing its purpose over profits. In reality, Sam Altman intentionally elected not to own any shares in the company to promote transparency and objectivity, a move he argued was crucial to maintain a majority of “disinterested directors”—board members without financial stakes in the company.
However, as the company grows and competes with heavyweights such as Google and Meta, it is exploring becoming a for-profit benefit corporation. This concept would allow for additional financial flexibility, such as raising capital from private investors. OpenAI is purportedly in talks to fund $6.5 billion with potential backers including Thrive Capital, Khosla Ventures, Microsoft, and Nvidia. This restructure might provide Altman, who has amassed enormous fortune from his past startup investments, with the opportunity to ultimately own shares in the company he helped develop.
While equity pay may seem commonplace for tech CEOs, it raises deeper concerns for a business like OpenAI, which was formed to democratize AI while prioritizing ethical concerns. Altman’s decision not to own equity has long been consistent with OpenAI’s aim of avoiding profit-driven thinking. However, as the organization grows into a more commercially focused entity, connecting its leadership incentives with economic performance becomes increasingly crucial.
