Sam Altman informs OpenAI employees that he has no intention of receiving a significant equity stake in the company.

Sam Altman informs OpenAI employees that he has no intention of receiving a significant equity stake in the company.
Sam Altman informs OpenAI employees that he has no intention of receiving a significant equity stake in the company.
  • During an all-hands meeting on Thursday, OpenAI CEO Sam Altman stated that he has no plans to acquire a significant equity stake in the company.
  • Bret Taylor, OpenAI Chairman, disclosed to CNBC that the board has discussed the possibility of giving Elon Musk a stake, but no specific details regarding the percentage have been revealed.
  • The board's decision to restructure the company to a for-profit business led to a meeting late Thursday.

At an all-hands meeting on Thursday, OpenAI CEO Sam Altman refuted rumors that he would receive a "giant equity stake" in the company, stating that the information was "not true," according to a person present.

At a video meeting, both Altman and finance chief Sarah Friar expressed concerns raised by investors about Altman's lack of equity in the high-valued artificial intelligence company he co-founded almost nine years ago, said the source who requested anonymity because the meeting was only for employees.

Altman stated that there are no current plans for him to attain an equity stake, the person said.

While the board has discussed the issue, no specific numbers have been disclosed.

Taylor stated that the board has discussed the possibility of compensating Sam with equity, but no specific figures have been discussed and no decisions have been made.

According to a separate source, the meeting scheduled for late Thursday will discuss the possibility of restructuring the company as a for-profit business. If this change happens, the non-profit segment will remain as a separate entity, said the source who requested anonymity as no final plan has been decided.

Despite directors' contemplation of OpenAI's future, key executives are still leaving the company.

On Wednesday, three executives announced their departures from OpenAI. Mira Murati, who had been the interim CEO for a brief period, announced she would be leaving after six and a half years. Later in the day, research chief Bob McGrew and Barret Zoph, a research vice president, also announced their departure from the company.

In an interview on Thursday at Italian Tech Week, Altman stated, "I believe this transition will be beneficial for everyone involved and I hope OpenAI will become even stronger as a result, just like we have in all our previous transitions."

Contrary to some media reports, Altman stated that the departures were not linked to the company's potential restructuring.

"I saw a lot of things that were completely incorrect, but we have been thinking about it for a year independently," Altman stated at the event in Turin, Italy. "We believe that this is about individuals being ready for new chapters in their lives and a new generation of leadership."

Murati informed the company in a memo that she is "taking a step back to allow for personal exploration" and will prioritize a "seamless transition."

In May, Ilya Sutskever and Jan Leike, both co-founders of OpenAI, announced their departures. John Schulman, another co-founder, revealed last month that he was leaving to join Anthropic.

CNBC reports that OpenAI, a company backed by, is currently seeking funding in a round that could value the company at over $150 billion. Thrive Capital is leading the round and plans to invest $1 billion, while Tiger Global is also planning to participate.

Since the launch of ChatGPT in late 2022, OpenAI has experienced rapid growth, but it has also faced controversy and executive departures, with some current and former employees expressing concerns about the company's ability to operate safely due to its rapid expansion.

Altman was removed from his position as CEO of OpenAI in November, but was later reinstated. Most of the company's employees signed a public letter stating their intention to leave in protest of the board's decision. Following this, Altman returned to the company and Murati resumed her role as CTO.

WATCH: Scrutiny on Altman

Sam Altman faces scrutiny amid massive OpenAI shakeup
by Hayden Field

Technology