Sam Altman’s OpenAI eyes profit. The artificial intelligence (AI) company is reportedly exploring plans to abandon its non-profit roots in favor of restructuring as a for-profit public benefit corporation. If the changes are finalized, CEO Sam Altman and his team could be protected from potential takeovers and leadership challenges, according to sources cited by The Financial Times.

The move will mark a dramatic shift for the company that began in 2015 as a nonprofit research initiative dedicated to the ethical and transparent advancement of AI. Co-founded by leading figures such as Sam Altman, Elon Musk, Peter Thiel, and Reid Hoffman, OpenAI was originally conceived as a non-profit organization focused on ensuring that AI benefits humanity. Delivery methods will be developed. However, over the past few years, the organization has moved toward more commercial ventures with products such as ChatGPT Plus and Sora. It is now ready to adopt a structure consistent with that trajectory.

OpenAI’s restructuring plans

OpenAI’s board is considering switching to a public benefit corporation (PBC), a model that combines the pursuit of profit with a legal obligation to consider the social impact of its actions. This hybrid structure, already adopted by OpenAI’s rivals such as Elon Musk’s XAI and Amazon-backed Anthropic, would represent a compromise between OpenAI’s original mission and its growing commercial focus.

If the restructuring goes ahead as planned, the non-profit entity that has controlled OpenAI since its inception will continue to exist, but will relinquish control over the day-to-day operations of the firm. The change is designed to allow OpenAI to adopt a “multifaceted approach to fiduciary obligations”, potentially protecting the company from activist investors and outside efforts to challenge Altman’s leadership.

The restructuring also aims to make OpenAI more attractive to investors. Currently valued at around $150 billion, the company’s value could rise following a restructuring as it removes caps on returns for investors and seeks new capital. Additionally, the restructuring could see Sam Altman offer his first equity stake in OpenAI’s for-profit arm – signaling a shift in focus toward financial growth.

Departure from nonprofit origins certainly controversial

For many, OpenAI’s pivot to a for-profit model is controversial, especially in light of the company’s original mission. Elon Musk, who co-founded OpenAI but has since distanced himself from the organization, has been vocal in his criticism of the direction the company has taken. During a talk at the Cannes Lions Festival, Musk expressed his dissatisfaction, saying, “The ‘open’ in OpenAI was meant to stand for ‘open source’…was created with a lot of good intentions.” He lamented that OpenAI has lost its way and become what he calls a “max-profit AI” organization – contrary to its founding ideals of open and transparent development.

Musk’s criticism is especially sharp given OpenAI’s foundational commitment to advancing AI “that is most likely to benefit humanity as a whole.” OpenAI’s initial focus was on developing artificial general intelligence (AGI) while carefully considering its ethical and social implications. Musk has accused the company of abandoning these principles for a closed-source, profit-driven approach.

Will this be a new chapter for AI governance?

The proposed restructuring also raises questions about how OpenAI will manage the risks associated with powerful AI technologies under its new governance structure. With greater corporate independence and potentially less oversight mechanisms from its nonprofit board, the company’s approach toward AI safety and ethics may evolve. Some experts worry that this change could weaken OpenAI’s commitment to transparency and responsible AI development, although the company insists that social benefits remain the priority. “We are focused on building AI that benefits everyone, and we are working with our board to ensure we are best positioned to succeed in our mission. Nonprofit The core of our mission is and will continue to exist.” An OpenAI spokesperson told Reuters in September.

This governance change is made even more complicated by Altman’s own history with the board. Last fall, Altman was ousted by OpenAI’s nonprofit board of directors, only to return days later after almost the entire board resigned. The drama has raised concerns that the company’s restructuring is as much about consolidating Altman’s power as it is about streamlining operations.

While the timeline for the restructuring remains uncertain, for now, OpenAI’s nonprofit will retain a minority stake in the for-profit unit, and its role in overseeing the company’s broader mission remains to be seen. But as one of the world’s most influential AI companies, OpenAI’s next steps will be closely watched by industry, investors and the public alike. Whether the shift to the public benefit corporation can balance social well-being with profit-making remains the key question in this emerging chapter of AI development.