Sam Altman plans to turn OpenAI into a regular for-profit company: Report

Sam Altman has discussed transitioning OpenAI into a traditional for-profit entity- a departure from the company's current “capped-profit” structure.

OpenAI CEO Sam Altman is reportedly considering a major restructuring of the company. He has discussed transitioning OpenAI into a traditional for-profit entity which would mark a departure from the company's current “capped-profit” structure which was implemented in 2019, The Information reported.

OpenAI CEO Sam Altman speaks during the Microsoft Build conference at Microsoft headquarters in Redmond, Washington. (AFP)

This comes amid controversy surrounding Sam Altman's leadership after he was briefly removed from his position in November as the OpenAI board accused him of withholding information and misleading them. He was quickly reinstated later but former OpenAI board member Helen Toner recently accused Sam Altman of being a deceptive leader who lied to the company's board and hid the release of ChatGPT among other critical information.

Helen Toner said that two OpenAI executives reported instances of "psychological abuse" to the board and “they were really serious, to the point where they actually sent us screenshots and documentation of some of the instances they were telling us about.”

“[I]t was very clear to all of us that as soon as Sam had any inkling that we might do something that went against him, he would pull out all the stops, do everything in his power to undermine the board, to prevent us from even getting to the point of being able to fire him,” she said.

OpenAI responded to the claims and said, “We are disappointed that Miss Toner continues to revisit these issues...The review concluded that the prior board's decision was not based on concerns regarding product safety or security, the pace of development, OpenAI's finances, or its statements to investors, customers, or business partners.”