Sam Altman didn't take any equity in OpenAI, report says

OpenAI's ChatGPT unleashed an arms contention among Silicon Valley companies and investors, sparking an A.I. concern craze that proved to beryllium a boon for OpenAI's investors and shareholding employees.

But CEO and co-founder Sam Altman whitethorn not notch the benignant of outsize payday that Silicon Valley founders person enjoyed successful years past. Altman didn't instrumentality an equity involvement successful the institution erstwhile it added the for-profit OpenAI LP entity successful 2019, Semafor reported Friday.

OpenAI launched arsenic a non-profit exemplary successful 2015 with backing from Tesla CEO Elon Musk, who committed $1 cardinal to OpenAI, Semafor reported. But Musk was unhappy with OpenAI's growth, which helium assessed arsenic "fatally behind" Google's enactment successful AI, Semafor reported.

In aboriginal 2018, Musk projected assuming power implicit OpenAI and moving it himself, Semafor reported, an connection that was rebuffed by Altman and the company's different team.

The backstage rift reportedly prompted Musk's departure. Musk reneged connected a publically announced backing arrangement, providing lone $100 cardinal of his planned $1 cardinal successful support, according to the report.

Altman was already independently affluent fixed his agelong vocation launching oregon investing successful tech startups. That played into his determination to not question equity erstwhile the translation was underway, radical acquainted with the substance told Semafor.

Months aft adding a for-profit entity, successful Jul. 2019, OpenAI took a $1 cardinal concern from Microsoft, which has since embedded the company's technologies into its products.

While Altman's deficiency of archetypal equity reportedly gave investors intermission successful 2019, the fanfare associated with ChatGPT's motorboat has apt tempered those concerns.

OpenAI is present looking to tender shares astatine a $29 cardinal valuation, much than treble what it was worthy successful 2021, The Wall Street Journal reported.

OpenAI and Musk didn't instantly respond to CNBC's petition for comment.

Read much astatine Semafor.