From passion to profit: OpenAI’s latest shakeup shows the AI race is about who has the deepest pockets

Sam Altman is CEO of OpenAI.

Jack Guez/Getty Images; Jenny Chang-Rodriguez/BI

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OpenAI is open to some changes.

The world’s most high-profile startup is reportedly looking to restructure itself into a for-profit benefit corporation, ending control of the company by its non-profit board.

The process would also include giving equity to CEO Sam Altman, who currently holds no stake in the startup poised to be valued at $150 billion. Altman could reportedly receive a 7% equity stake, which would be worth about $10.5 billion at OpenAI’s new valuation.

But wait, there’s more!

News of the potential restructuring followed OpenAI CTO Mira Murati announcing her departure from the startup. The Tesla alum spent over six years at OpenAI, including a brief stint as interim CEO during the failed Altman ouster last November. Employees reportedly reacted to the news by posting a “WTF” emoji on Slack.

In March, The New York Times reported Murati raised concerns about Altman’s leadership style to the board before the ouster. However, Murati’s lawyer said at the time the Times’ reporting on her involvement in forcing out Altman was “flat wrong.”

And Murati wasn’t the only executive exit announced on Wednesday. Barret Zoph, the company’s vice president of research, and Bob McGrew, OpenAI’s chief research officer, are also departing the startup, Altman announced on X.

OpenAI’s leadership ranks have faced significant changes in the almost year since the board attempted to push Altman out. Many of OpenAI’s C-level executives have departed. Meanwhile, the firm has gone on a hiring spree in other areas, including non-tech roles in legal and lobbying.

But such is life at OpenAI, which one VC investor described to Business Insider’s Lakshmi Varanasi as “the most fascinating and the most terrifying company of our times.”

It’s a point that even Altman somewhat acknowledged in a memo to staff detailing the departures.

“I obviously won’t pretend it’s natural for this one to be so abrupt, but we are not a normal company,” Altman wrote.

Joel Saget/Getty Images; Jenny Chang-Rodriguez/BI

OpenAI’s shakeup is occurring as the AI race comes into focus.

Some of OpenAI’s biggest competitors — Alphabet, Amazon, Meta — also happen to be among the most valuable companies in the world. And with the high cost of AI development — from the hardware to the talent — having deep pockets matters.

So it’s no surprise that OpenAI would want to make itself as attractive as possible to potential investors to ensure the cash keeps flowing in. According to Reuters, which broke the news, OpenAI’s new structure would resemble how rival startups Anthropic and Elon Musk’s xAI are set up. (Musk, by the way, was happy to take a jab at Altman over the latest executive exits.)

But considering OpenAI was built on the premise investors wouldn’t influence it, the move will likely still raise eyebrows. Altman, for his part, responded to a question in Congress about his lack of equity back in 2023 by saying he was “doing this because I love it.”

Of course, wanting to profit from your work isn’t a crime. But OpenAI’s pivot is another example of how what it presents to the public doesn’t always seem to jive with what it looks to do in private.