OpenAI examines the Benefit Corporation model in the face of investor pressure

According to The Information, CEO Sam Altman announced that OpenAI is considering the idea of ​​transforming into a public benefit company. This potential transition, disclosed to some investors, could lead to an initial public offering (IPO) and allow Altman to secure a stake in OpenAI. This initiative would result in management ceding control to nonprofit organizations.

The Information reports that investors encouraged this change as they saw opportunities for significant growth and increased market reach. Adopting a benefit corporation model could provide OpenAI with greater flexibility and open up new opportunities for strategic partnerships and investments.

This model legally requires companies to consider social and environmental responsibility in conjunction with profit, which is attractive to socially conscious investors.

Strategic IPO and acquisition of shares

The move to benefit corporation status could ease OpenAI’s path to an IPO, putting it in a similar position to organizations like Anthropic and xAI. Changing the legal status of OpenAI is being considered to attract more funding and accelerate the development of artificial intelligence technology.

OpenAI currently has an estimated valuation of $86 billion, and this change could allow Altman to gain a significant financial stake in line with investor demands. OpenAI’s CEO has already amassed a significant net worth estimated at $2.8 billion, making him richer than top tech CEOs such as Microsoft’s Satya Nadella and Apple’s Tim Cook.

Overall, the AI ​​industry is currently undergoing major changes, with top executive appointments and significant collaboration among important stakeholders.

Microsoft is working to become independent from OpenAI by investing heavily in the development of its own AI models. The company also recently hired Google DeepMind co-founder Mustafa Suleyman to lead its AI team and is deepening partnerships with cloud service providers such as Oracle. In turn, OpenAI works with large corporations such as Reddit, PwC, News Corp and most recently Apple.

Anthropic hired the Instagram co-founder as its new chief product officer, and Emad Mostaque resigned as CEO of Stability AI in March, likely leaving a sinking ship as the company struggles to generate money with its products.

OpenAI’s potential transition to benefit corporation status is part of this rapidly changing environment in which companies are gradually aligning their business strategies with ambitious goals.