{"id":45122,"date":"2024-09-26T16:21:28","date_gmt":"2024-09-26T20:21:28","guid":{"rendered":"https:\/\/mjtsai.com\/blog\/?p=45122"},"modified":"2024-10-07T10:01:40","modified_gmt":"2024-10-07T14:01:40","slug":"openai-to-become-for-profit-company","status":"publish","type":"post","link":"https:\/\/mjtsai.com\/blog\/2024\/09\/26\/openai-to-become-for-profit-company\/","title":{"rendered":"OpenAI to Become For-Profit Company"},"content":{"rendered":"

Deepa Seetharaman et al.<\/a> (Hacker News<\/a>):<\/p>\n

\n

OpenAI is planning to convert from a nonprofit organization to a for-profit company at the same time it is undergoing significant personnel changes, including the resignation Wednesday of its chief technology officer, Mira Murati.<\/p>\n

[…]<\/p>\n

Under the proposed changes, the nonprofit arm of OpenAI and Chief Executive Sam Altman would own stakes in the new for-profit company. Altman hasn’t previously owned a stake in OpenAI.<\/p>\n

[…]<\/p>\n

The restructuring is designed in part to make OpenAI more attractive to investors, as the company is currently attempting to close a funding round of up to $6.5 billion. […] Unlike prior investors in OpenAI, those who put money into the current round wouldn’t have a cap on the profits they can earn.<\/p>\n<\/blockquote>\n\n

Jay Peters and Kylie Robison<\/a> (Hacker News<\/a>):<\/p>\n

\n

“I’m stepping away because I want to create the time and space to do my own exploration,” she wrote in a post on X<\/a>. “For now, my primary focus is doing everything in my power to ensure a smooth transition, maintaining the momentum we’ve built.”<\/p>\n

In addition to Murati, two other OpenAI leaders are also departing: Bob McGrew<\/a>, OpenAI’s chief research officer who spoke to The Verge<\/em><\/a> <\/em>for the release of its o1 “reasoning” model just two weeks ago, and Barret Zoph<\/a>, VP of post training. CEO Sam Altman said they “made these decisions independently of each other and amicably” in a separate note to employees he also posted on X<\/a>.<\/p>\n<\/blockquote>\n\n

M.G. Siegler<\/a>:<\/p>\n

[For Altman, a] 7% of $150B – the rumored valuation of the most recent funding coming together – is just over $10B. That’s probably not a coincidence.<\/p>

[…]<\/p>

Clearly, this was not some sort of planned transition – as Altman’s statement<\/a> (which was actually a re-statement<\/em><\/a> to include the people beyond Murai leaving– read into that what you will) highlights[…] So again, he’s chalking these three departures up to coincidental timing. That’s certainly possible, but it’s also hard to overlook all of the other recent departures. Someone has to ask: what is going on here?<\/p><\/blockquote>\n\n

See also: Brew Markets<\/a>.<\/p>\n\n

Previously:<\/p>\n