OpenAI Chair Discusses Potential Equity Compensation for CEO sam Altman

OpenAI Chair Bret Taylor announced on thursday that the board has considered providing CEO sam Altman with equity compensation, though no final decision has been made. Taylor emphasized that specific figures regarding this potential equity have not been discussed.

Recent reports from Reuters indicated that OpenAI is exploring a plan to restructure its core business into a for-profit benefit corporation, which would allow Altman to receive equity for the first time. Up to now, Altman, who co-founded OpenAI in 2015, has not taken a stake in the organization. He previously opted against acquiring shares to maintain a board comprised mainly of disinterested directors without financial stakes in the company.

In a separate development, Chief technology Officer Mira Murati and senior research executives Barret Zoph and Bob McGrew announced their sudden departures from OpenAI on Wednesday. During a conference in Italy, Altman denied any connection between these personnel changes and the company's restructuring efforts.

OpenAI is currently in negotiations to raise $6.5 billion, with expected investors including venture capital firms Thrive capital and Khosla Ventures, as well as major public companies like Microsoft, Nvidia, and Apple. The company's projected $150 billion valuation hinges on successfully executing the corporate restructure, which would lift the cap on investor returns.

Under the proposed structure, the new for-profit entity would operate independently from the non-profit board that currently governs OpenAI. However, the non-profit will continue to exist and maintain a minority stake in the for-profit company.
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Balasahana Suresh

27/09/2024 01:31 PM