OpenAI Board Discusses CEO Compensation

(Reuters) – OpenAI Chair Bret Taylor stated on Thursday that the company’s board has considered compensating CEO Sam Altman with equity, but no decision has been reached.

In a statement, Taylor clarified that specific figures for Altman’s equity compensation have not been discussed.

Previously, Reuters reported that OpenAI was planning to restructure its core operations into a for-profit benefit corporation, with Altman set to receive equity in this new entity.

Altman, who co-founded OpenAI in 2015, has yet to take a stake in the company, despite being a billionaire from various startup investments. He had previously opted out of taking shares to ensure the board had a majority of disinterested directors without a financial stake in the company.

Recently, Chief Technology Officer Mira Murati and senior research executives Barret Zoph and Bob McGrew unexpectedly announced their departures. Altman, speaking at a conference in Italy, denied any connection between these personnel changes and the ongoing restructuring.

OpenAI is currently in discussions with investors to secure $6.5 billion, with potential backers including venture capital firms Thrive Capital and Khosla Ventures, as well as tech giants Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Apple (NASDAQ:AAPL).

Reuters mentions that the company’s potential $150 billion valuation depends on successful execution of the corporate restructure, which would also remove the cap on investor returns.

The proposed for-profit entity would not be overseen by the non-profit’s current board, which is responsible for Altman’s brief ousting from the company last November. However, the non-profit will still exist and own a minority stake in the newly formed for-profit entity.