A lot is in flux at OpenAI. There are plans to possibly rethink its nonprofit status, an ongoing fundraising that may almost double its valuation, and discussions to give Chief Executive Officer Sam Altman an equity stake - all against a backdrop of senior departures.
Depending on how the situation unfolds, Altman, already a billionaire, may emerge from it a much richer man.
If the fundraising - which people familiar with the matter say values OpenAI at $150 billion - succeeds, and Altman ends up with a 7% stake, his fortune may soar by more than $10 billion, according to the Bloomberg Billionaires Index. That would land him among the world’s very richest people.
Much is unknown about the plans, which are still under negotiation — including the exact size and structure of Altman’s possible stake, and whether it actually will materialize.
In a statement Thursday, Bret Taylor, chairman of the OpenAI board, said that the conversations were still in flux. “The board has had discussions about whether it would be beneficial to the company and our mission to have Sam be compensated with equity, but no specific figures have been discussed nor have any decisions been made.”
Still, the decision marks a new twist in the winding saga of OpenAI, the foremost company in the artificial intelligence craze, founded as a nonprofit with the goal of building the technology in a way that was safe and beneficial to humanity.
Bloomberg News in March pegged Altman’s fortune at more than $2 billion. His assets mainly consisted of money invested in venture capital funds and startups. He also owns stakes in closely held companies including Elon Musk’s Neuralink Corp. that don’t disclose his precise ownership and weren’t included in the calculation.
The figure didn’t include any stake in OpenAI. Altman has repeatedly said he doesn’t own equity in the company because he already had enough money, though he’s occasionally added that he wished he’d taken a stake so people would stop asking him about it.
“I am paid enough for health insurance; I have no equity in OpenAI,” Altman testified in a Senate hearing last year. “I’m doing this because I love it.”
AI Rewards
Receiving shares of OpenAI would let Altman enjoy the fruits of his most valuable engagement thus far. Earlier this month, Bloomberg News reported that OpenAI was in talks to raise $6.5 billion from investors at a valuation of $150 billion, which would make it one of the world’s most valuable startups.
Despite the lofty valuation, the company has been losing key leaders. On Wednesday, Chief Technology Officer Mira Murati announced on X she was leaving the company, “to create the time and space to do my own exploration,” on the same day Chief Research Officer Bob McGrew said it was “time to take a break.” Their departures will follow those of former Chief Scientist Ilya Sutskever and researcher John Schulman, both company co-founders. Another member of OpenAI’s founding team, President Greg Brockman, said he would go on leave through the end of the year.
The $10 billion estimated value of Altman’s potential 7% stake assumes that OpenAI’s $150 billion valuation — if the round closes — represents only the total worth of its shares and doesn’t include any debt the company may have. It also assumes that Altman will receive equity in the form of shares and not options or warrants, and without any vesting restrictions.
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