Cointime

Download App
iOS & Android

OpenAI reportedly considering shift to for-profit as CEO stacks board

Validated Media

Artificial intelligence (AI) company OpenAI is reportedly considering making the shift from a capped-profit corporation to an unfettered for-profit model. 

First reported by The Information, CEO and co-founder Sam Altman allegedly told shareholders he was considering the move sometime during the week of June 10. If realized, the pivot would ostensibly result in OpenAI’s non-profit board losing control of the company.

OpenAI currently has a purported private valuation of approximately $86 billion. Its current structure is described as “a partnership between our original Nonprofit and a new capped profit arm” on the company’s website.

The same website mentions that the shift to “capped profit” was meant to incentivize research into the field of artificial general intelligence (AGI) while maintaining the company’s vision. As for why the shift was necessary, according to OpenAI the “donations” required to perform the company’s work were insufficient and a new cash infusion model was necessary to incentivize stakeholders.

However, as of current, the website still maintains a warning that stakeholders should treat their investments as donations.

  Source: OpenAI.  

“Investing in OpenAI Global, LLC, is a high-risk investment. Investors could lose their capital contribution and not see any return. It would be wise to view any investment in OpenAI Global, LLC in the spirit of a donation, with the understanding that it may be difficult to know what role money will play in a post-AGI world.”

The reported push to restructure the company comes as CEO Sam Altman has refitted the board to include himself and numerous newly anointed, handpicked stakeholders. These include former CEO of the Bill and Melinda Gates Foundation Sue Desmond-Hellmann, former Sony VP Nicole Seligman, and Fidji Simo, CEO and chair of Instacart.

Also added to the board recently is retired U.S. Army general and former director of the National Security Agency Paul Nakasone.

Nakasone’s placement on the board of directors elicited a vitriolic response from former U.S. intelligence contactor Edward Snowden.

  Source: Edward Snowden.  

Snowden, posting on X.com, warned the public to “not ever trust @OpenAI or its products,” citing ChatGPT by name and adding that “there is only one reason for appointing an @NSAGov Director to your board.” He concluded with the chilling admonition that the appointment was “a willful, calculated betrayal of the rights of every person on Earth. You have been warned.”

Comments

All Comments

Recommended for you

  • A Total of 37,212.18 DMD Permanently Burned Over the Past 7 Days

    July 9, 2026 — According to the latest on-chain data released by DMDAO, a total of 37,212.18 DMD has been permanently burned over the past seven calendar days through the protocol's predefined trading and wealth management burn mechanisms.

  • Whale Transfers 1,133 BTC to Coinbase Prime, Valued at $71.48 Million

    According to Onchain Lens monitoring, a whale transferred 1,133 BTC from Coinbase to Coinbase Prime through an intermediary wallet, valued at $71.48 million.

  • U.S. AI Chip Stocks Decline Before Market Open, Intel Falls Over 3%

    On July 7, U.S. AI chip stocks experienced widespread declines before the market opened. Intel dropped over 3%, while AMD, Qualcomm, and NXP fell more than 2%. TSMC, Broadcom, and Tesla decreased by over 1%, and NVIDIA declined by 0.7%.

  • China's Central Bank Increases Gold Reserves for the 20th Consecutive Month

    As of the end of June, China's gold reserves stood at 75.44 million ounces (approximately 2,346.446 tons), an increase of 480,000 ounces (about 14.93 tons) from the end of May, which reported 74.96 million ounces (approximately 2,331.52 tons). This marks the 20th consecutive month of gold accumulation.

  • China's Foreign Exchange Reserves in June at $341.6262 Billion

    On July 7, China's foreign exchange reserves for June stood at $341.6262 billion, a decrease of $26 billion from the end of May, representing a decline of 0.75%, with expectations set at $343.2 billion.

  • U.S. Storage Stocks Drop Pre-Market, SanDisk and Micron Down Over 4%

    On July 7, U.S. storage concept stocks collectively fell in pre-market trading. Western Digital dropped over 5%, SanDisk and Micron Technology fell over 4%, Seagate Technology declined over 3%, Rambus fell over 2%, and SMI fell over 1%.

  • U.S. Stocks in Optical Communication Sector Drop Pre-Market

    On July 7, stocks in the optical communication sector of the U.S. market collectively fell pre-market. Astera Labs dropped over 4%, while Marvell Technology, Credo Technology, and AXT Inc. fell more than 3%. Tower Semiconductor, MaxLinear, Corning, Applied Optoelectronics, GlobalFoundries, Lumentum, and Qorvo all declined by more than 2%. Coherent, Nokia, Amphenol, and Broadcom dropped over 1%.

  • Pre-market Decline in U.S. Storage Stocks

    In pre-market trading, U.S. storage concept stocks experienced a widespread decline, with Micron Technology falling by 4.8%, SanDisk dropping over 4%, Corning down more than 2%, and Intel decreasing by over 3%.

  • Two Departments: Support for Reinsurance Institutions to Increase Capital and Issue Supplementary Capital Tools

    On July 7, the National Financial Supervision and Administration Bureau and the Shanghai Municipal Government released several measures to accelerate the construction of the Shanghai International Reinsurance Center. Among these measures, they proposed to enhance the quality and efficiency of the reinsurance industry, support reinsurance institutions in increasing capital and expanding shares, and issuing supplementary capital tools to improve the capacity for internal capital accumulation and external capital supplementation, thereby strengthening the reinsurance industry's capabilities. The initiative aims to guide the insurance industry to focus on major national projects, strategic emerging industries, and livelihood security, consolidating insurance and reinsurance underwriting capabilities to enhance risk protection levels. It also supports reinsurance institutions in leveraging their professional technical advantages to assist the insurance industry in reducing risk.

  • Sources: Saudi Arabia Plans to Expand Oil Pipeline to Red Sea, Increasing Capacity by 2 Million Barrels Daily to Bypass Strait of Hormuz

    On July 7, five informed sources revealed that Saudi Arabia is considering expanding the crude oil pipeline capacity to its western coast on the Red Sea, allowing Saudi Arabia and its neighbors to transport more oil without passing through the Strait of Hormuz. This east-west pipeline, built in the early 1980s, has gained strategic importance since the outbreak of the Iran war in February and the disruption of shipping in the Strait of Hormuz. The pipeline can deliver up to 7 million barrels of crude oil per day to the Red Sea port. The CEO of Saudi Aramco stated in May that approximately 2 million barrels are supplied to west coast refineries, while about 5 million barrels are for export. Sources indicate that Saudi Arabia is in preliminary discussions with some neighboring countries regarding the pipeline expansion, aiming to add about 2 million barrels of pipeline capacity per day. It remains unclear whether Aramco's planned expansion involves upgrading existing infrastructure or constructing new pipelines. One source mentioned that the expansion plan also includes a smaller refined oil pipeline. Two sources indicated that the expansion scale could range from 1 million to 2 million barrels per day, with refined oil also being considered. Another source stated that the project would take several years and cost billions of dollars, requiring adjustments to Saudi crude pricing mechanisms.