OpenAI was initially launched as a nonprofit in 2015 with investors including Hoffman, Elon Musk, Peter Thiel, Amazon Web Services, as well as Altman and Brockman. The company's structure now involves a for-profit AI company controlled by a non-profit organization. Investors in the for-profit business agree to a cap on their return on investment, which was 100x for the initial investors. Later investors have included Andreessen Horowitz, Bedrock Capital, Sequoia, and Tiger Global.
Key takeaways:
- OpenAI's CEO Sam Altman was ousted and president Greg Brockman resigned, surprising the tech world and OpenAI's investors.
- Key venture capital backers of OpenAI were not given advanced warning of the news, including Vinod Khosla and Reid Hoffman, both of whom had invested in the company.
- Microsoft, which has invested over $10 billion into OpenAI, was informed of Altman's firing and dismissal from the board only one minute before the news was publicly announced.
- OpenAI's corporate structure is a for-profit AI company controlled by a non-profit organization, with investors agreeing to a return on investment cap. Initial investors included Elon Musk, Peter Thiel, and Amazon Web Services.