OpenAI Could Grant Sam Altman ​​​​​​​7% Stake, Worth $10.5 Billion In For-Profit Transition – ZeroHedge 9/26/24

Source: ZeroHedge.com

Update (0800ET): Building on the Reuters report that ChatGPT-maker OpenAI is mulling over restructuring its core business from a non-profit to a for-profit company, Bloomberg cites sources indicating that CEO Sam Altman could be awarded a handsome 7% equity stake in the artificial intelligence startup.

OpenAI is discussing giving Chief Executive Officer Sam Altman a 7% equity stake in the company and restructuring to become a for-profit business, people familiar with the matter said, a major shift that would mark the first time Altman is granted ownership in the artificial intelligence startup.

The company is considering becoming a public benefit corporation, tasked with turning a profit and also helping society, said the people, who asked not to be identified because the information is private. The transition is still under discussion and a timeline has not been determined, one of the people said. -BBG

About two weeks ago, Bloomberg reported that OpenAI was discussing a new $6.5 billion investment round with a valuation of $150 billion. This is a major jump from the $86 billion valuation earlier this year.

Altman’s potential 7% stake would be worth $10.5 billion at current valuations….

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