OpenAI CEO Sam Altman sat before Congress in 2023 to testify about the dangers of AI. He told US Congressmen at the time. I do not own shares in OpenAI.He has said many times that he loves the company.
However, Altman said recently that at one point he actually had some stake in OpenAI through the Sequoia fund. in the Interview with Bari Weiss In Thursday's release, Altman was asked what kind of stake he might have if OpenAI successfully transforms into a for-profit company.
Here's what OpenAI CEO said.
I have a small holding from the old YC fund – I used to have some through the Sequoia fund, but it was easy to sell and I didn't hold the position – so I have a very small amount. I don't know what will happen to me next. There are no current plans or promises to acquire anything.
Altman's investment through Y Combinator was known, but his investment through Sequoia was not. OpenAI discloses Altman's indirect investment in his own company through YC. on its website. That “small investment” was the CEO's “sole interest” in the company, and was made before he started working full-time at OpenAI.
Sequoia reportedly first invested in OpenAI in 2021. Its websiteTwo years after Altman became OpenAI's full-time CEO, At that time, OpenAI is worth roughly $14 billion, a value that has exploded. $157 billion after the startup's last funding round earlier this year – Also participated in the Sequoia circle.
Although Sequoia's stake in OpenAI from 2021 will be worth more than it is now. There are many unknowns about Altman's investment through the venture firm. Venture capital firms like Sequoia are not required to disclose their limited partners to investors. It's unclear when Altman sold the stake and for how much.
An OpenAI spokesperson confirmed Altman's prior exposure in a statement to TechCrunch; However, details about these aspects are not disclosed.
“Sam has never had any direct ownership in OpenAI. He owns less than one percent of the general Sequoia fund, along with a broader portfolio. The latter involved very little exposure to OpenAI,” OpenAI spokeswoman Kayla Wood told TechCrunch in a statement. “Sam has no further commitment to funding.”
Most CEOs have equity in the companies they run. If running a public company, the largest percentage of a CEO's pay is equity. Of course, Startup founders begin the journey of owning all the shares in their companies until they give shares to employees and sell them in bulk to investors. But OpenAI was founded as a non-profit organization, has a strange structure, and Altman has repeatedly said he owns nothing. This month, Altman says he has no equivalent at OpenAI. The New York Times' DealBook Summit.
Malay in an interview All in a podcastThe OpenAI CEO said he originally decided not to invest in the company because of its corporate structure. According to him, CharterOpenAI's non-profit board is required to be filled with a majority of independent directors, who cannot hold equity in the company. Altman said that makes it unfair for anyone to be one of the independent directors. However, Altman said that this led to the questioning of the attitude of the company's CEO, which may be one of the reasons why the company moved away from this structure.
Altman's stake in OpenAI is becoming more relevant, as is the company. Attempts to convert the branch for its benefitOpenAI is also reportedly considering becoming an independent company controlled by a non-profit board. Equity grant to CEO. The company and Altman have denied any plans to work on this transition.
OpenAI's for-profit transition Currently, there is a possibility that Elon Musk's lawsuit will be maintained. Against the startup. At its core, Musk's lawsuit claims OpenAI is abandoning its original non-profit mission to make the fruits of its AI research available to everyone. However, OpenAI recently claimed that Musk wanted to turn the startup into a profitable one. From the beginning
In an interview with Weiss and Altman, the OpenAI CEO called Elon Musk a “bully” who “clearly likes to fight.” On the other hand, Altman slammed Meta for asking California's attorney general to block OpenAI's for-profit transition.
“I don't know why Meta sent this message, but they know it doesn't work anyway. I know that part is bad faith,” Altman said. “I can think of many other ways that Meta could send this message. I can imagine they wanted to favor Elon; I can imagine they will help us compete.”
Altman's exposure to OpenAI through Sequoia is weak, but it's hard to square Altman's comments about the lack of equity in OpenAI with his recent comments on Weiss' podcast.