OpenAI reportedly plans to restructure into a for-profit entity, retaining its non-profit segment as a separate entity. According to sources familiar with the matter, the restructuring aims to simplify the company’s structure, making it more appealing to investors and providing liquidity for employees. This comes at a time when the company is pursuing a major funding round that could raise its valuation to over $150 billion. However, OpenAI’s tech chief Mira Murati leaves after six and a half years with the company, citing personal exploration as her reason.
The restructuring discussions follow a string of high-profile departures at OpenAI. Chief Technology Officer (CTO) Mira Murati recently announced plans to leave the company after six and a half years. In a memo shared both internally and on social media platform X, Murati stated that she is stepping down to focus on personal exploration and to ensure a smooth transition of responsibilities. Her decision to leave comes during a period of significant growth and transformation for the company.
CEO Sam Altman later confirmed that two other key executives, Bob McGrew, Chief Research Officer, and Barret Zoph, Vice President of Research, are also departing. Altman emphasized that their decisions were independent but acknowledged that the timing aligned, allowing for a comprehensive leadership transition. McGrew, who joined OpenAI in 2017, praised the company’s rapid rise in global influence, while Zoph hinted at pursuing new opportunities outside OpenAI.
High-Profile Departures Continue
OpenAI’s tech chief Mira Murati leaves at a time when the company is pursuing a $150 billion valuation in its latest funding round. These exits add to a growing list of top executives leaving OpenAI. Earlier this year, co-founder John Schulman departed to join rival AI firm Anthropic, while Chief Scientist Ilya Sutskever and former safety leader Jan Leike also left the company. The loss of key figures comes as OpenAI is in the process of securing significant investment, with Thrive Capital reportedly leading the funding round, which is expected to bring in $1 billion. Microsoft, Nvidia, Apple, and Tiger Global are also in talks to participate in the investment round.
Despite its meteoric rise, OpenAI has faced internal challenges and controversies. Some employees and former staff have raised concerns that the company’s rapid growth may compromise its safety protocols. OpenAI’s focus on delivering cutting-edge AI technology has been a point of contention, especially given its mission to develop AI for the benefit of humanity.
Murati briefly served as interim CEO in November 2023 when the board temporarily ousted Altman. At the time, the board cited issues with Altman’s communication, and his removal led to an uproar among employees, with many threatening to leave. Altman was reinstated just days later, and Murati returned to her role as CTO. However, her latest decision to leave has raised questions about leadership stability within the company.
Major Funding Round and Structural Changes
OpenAI is currently navigating a $6.5 billion funding round, which could significantly increase its valuation. This financing round coincides with the company’s plans to restructure into a for-profit benefit corporation, a shift from its current non-profit-controlled setup. This change would allow the company to offer equity stakes, including one for CEO Sam Altman.
OpenAI’s tech chief Mira Murati leaves during a crucial phase as the AI giant plans to restructure into a for-profit benefit corporation. Although the funding round is ongoing, the recent departures have sparked concerns about investor confidence. Some deals include clauses allowing investors to withdraw if significant events negatively impact the company. It remains unclear if the executive exits will trigger such clauses.
Altman has moved quickly to implement internal promotions following the leadership shake-up. Mark Chen has been named Senior Vice President of Research, and Matt Knight has been appointed Chief Information Security Officer. Despite the recent turmoil, Altman has reassured staff and investors that OpenAI’s mission will remain unchanged.
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