OpenAI is working to restructure its organization by removing the nonprofit board’s control over its operations while ensuring proper compensation for the change. According to reporting by David A. Fahrenthold, Cade Metz, and Mike Isaac in The New York Times, the negotiations could involve billions of dollars in compensation to the nonprofit.
The company faces a two-year deadline to complete this restructuring, as promised to investors. CEO Sam Altman, who survived an attempted ouster by the nonprofit board in November 2023, is leading these efforts despite holding positions on both sides of the negotiation. The restructuring is complicated by the involvement of major investors like Microsoft, whose approval may be required for the final changes.
The nonprofit currently controls OpenAI’s operations and holds the power to declare when the company achieves artificial general intelligence (AGI), a designation that could affect its partnership with Microsoft. Under the proposed changes, the nonprofit could transition to funding research on AI ethics.
The reorganization aims to help OpenAI compete more effectively with tech giants like Google and Meta while raising the necessary capital for AI development. The process is being closely monitored by government regulators, including Delaware’s attorney general, who wants to ensure the nonprofit’s interests are protected in any structural changes.