Sam Altman Opted Out of Equity Stake In $157 Billion OpenAI, Prioritizing 'Dream Job' Over Wealth

OpenAI’s CEO Sam Altman has made a surprising revelation. He chose not to take any equity in the company when it was established in 2015.

What Happened: Altman, a co-founder of the artificial intelligence firm, expressed at the New York Times’ DealBook Summit that his primary interest lies in leading the AI industry rather than in amassing wealth. His annual salary as OpenAI’s CEO is $76,000.

OpenAI, functioning as a nonprofit with a for-profit arm under Altman’s leadership, was recently valued at $157 billion. Despite the opportunity for a substantial equity stake, Altman chose to relinquish it to ensure a majority disinterested board, a prerequisite for the company’s nonprofit status.

Altman, who is already a billionaire with a net worth of $1.1 billion, primarily from equity in Stripe, Reddit, and Helion, perceives his role at OpenAI as a “childhood dream job” rather than a wealth generation source.

"This is my childhood dream job. Getting to work on artificial general intelligence and getting to sit in the room with the smartest researchers in the world and go on this crazy adventure, like that is what I always wanted to do," he said during the summit.

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His choice to refuse equity has stirred intrigue among investors, with some interpreting it as a lack of faith in the company’s success. Nonetheless, Altman has reiterated his dedication to OpenAI and its mission, irrespective of its for-profit status.

"If I could go back in time, I would have taken equity, just some little bit, just to never have to answer this question," Altman said.

Why It Matters: Altman’s decision to forgo an equity stake in OpenAI is a significant move, especially considering the company’s recent valuation. His choice underscores his commitment to the company’s mission and his belief in the transformative potential of artificial intelligence.

Altman’s decision also highlights the unique structure of OpenAI, which operates as a nonprofit but has a for-profit arm. This structure allows it to attract investment while maintaining a focus on its mission rather than profit.

Despite some investors’ concerns, Altman’s decision could ultimately strengthen OpenAI’s position in the AI industry by reinforcing its commitment to its mission over profit.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.