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Sam Altman once owned some equity in OpenAI through Sequoia | TechCrunch

Dec 20, 2024 - techcrunch.com
In 2023, OpenAI CEO Sam Altman testified before Congress about AI dangers, stating he owned no equity in OpenAI, a claim he has made repeatedly. However, Altman later revealed he had a small, indirect stake in OpenAI through a Sequoia fund, which he has since sold. This stake was less than a fraction of a percent and was part of a broader Sequoia fund portfolio. Altman maintains that his only interest in OpenAI is a minor investment through Y Combinator, made before he became the full-time CEO. OpenAI's unique structure as a non-profit with a for-profit branch has led to complexities in equity ownership, with Altman choosing not to hold equity to remain an independent director.

The issue of Altman's equity has gained attention as OpenAI considers transitioning its for-profit branch into an independent company, a move complicated by Elon Musk's lawsuit against the startup. Musk claims OpenAI is straying from its nonprofit mission, while Altman has criticized Musk and Meta for their opposition to the transition. Despite Altman's assertions of having no equity, his recent comments have raised questions about his involvement. OpenAI and Altman have denied plans to grant him equity in the future.

Key takeaways:

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  • Sam Altman, CEO of OpenAI, has stated he owns no direct equity in the company, but he did have a small indirect stake through a Sequoia fund, which he has since sold.
  • OpenAI's transition from a non-profit to a for-profit entity is complicated by its unique structure and a lawsuit from Elon Musk, who claims the company is straying from its original mission.
  • Altman has faced scrutiny over his motives due to his lack of equity in OpenAI, which he attributes to the company's corporate structure requiring independent directors without equity.
  • There is ongoing controversy and competition involving OpenAI, with Altman criticizing both Elon Musk and Meta for their actions related to OpenAI's for-profit transition.
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