Altman to Overhaul OpenAI’s Nonprofit Structure Next Year
Altman described OpenAI's existing structure as “unusual.”
Sam Altman, co-founder and CEO of OpenAI, has revealed plans to significantly overhaul the company’s current nonprofit-based organizational structure, the Fortune reported.[1] During an internal meeting with OpenAI's team, Altman announced that the company will transition away from its complex nonprofit model, which includes a nonprofit entity overseeing a for-profit arm and a holding company.
Altman described OpenAI's existing structure as “unusual” and indicated that the company has outgrown this setup. This structure has historically supported major investments, including billions from Microsoft.
While details on the new organizational model are still unclear, Altman confirmed that the shift is expected to occur next year. This change follows his discussions with shareholders about potentially transforming OpenAI into a for-profit entity, similar to other AI companies such as Anthropic and xAI.
This announcement follows months of speculation about Altman's plans to adopt a more traditional, investor-oriented corporate structure, reflecting a broader trend among tech firms to align with investor interests.
In June, Altman informed some shareholders that the company is considering a shift to a for-profit firm structure, according to a report by The Information. This potential change would mean the firm's nonprofit board would no longer control the company.