OpenAI Co-founder Reveals $30 Billion Stake and Financial Ties with CEO

Deep News08:03

OpenAI co-founder and President Greg Brockman disclosed on Monday that his financial connections with CEO Sam Altman are closer than previously known, and his stake in the ChatGPT developer is valued at nearly $30 billion.

These details emerged during court questioning by lawyers representing Elon Musk, a former OpenAI co-founder who is currently suing the company. Musk alleges that OpenAI improperly transitioned to a for-profit entity, abandoned its charitable mission, and should revert to a non-profit structure.

Musk's legal team argued that Brockman's independence may be compromised by financial interests that incentivize him to support Altman—the driving force behind OpenAI's shift to a for-profit model. Brockman also revealed in court that he holds stakes in two startups backed by Altman, as well as a portion of Altman’s family fund.

The trial, now in its second week in a California court, could determine the future of OpenAI. The company ignited widespread generative AI enthusiasm after launching the ChatGPT chatbot in late 2022. Since then, OpenAI has raised over $100 billion from investors to hire researchers, acquire computing power, and scale operations in preparation for a potential trillion-dollar IPO.

Musk is seeking the removal of Altman and Brockman from leadership roles and demanding $150 billion in damages.

Early in his testimony, Brockman acknowledged that his stake in OpenAI is worth close to $30 billion—a figure not previously disclosed. In 2017, Altman gifted Brockman $10 million worth of equity from his family office. That same year, Brockman, Musk, and other OpenAI executives discussed restructuring the organization as a for-profit entity to cover the high computational costs of training AI systems.

Brockman stated that he did not discuss his compensation directly with Musk. Emails read in court revealed that Altman mentioned the arrangement in a separate conversation with Jared Birchall, head of Musk’s family office, who then relayed the details to Musk.

“It is worth noting now that he compensated Greg privately by giving him a piece of Sam’s personal family office,” Birchall wrote in an email, adding that the deal could mean “Greg will be more loyal to Sam as a result.” Musk forwarded Birchall’s email to Brockman, adding two question marks.

When pressed on whether he is loyal to Altman, Brockman replied, “I’m not sure I would phrase it that way.”

On Monday, Brockman disclosed he holds shares in AI chip startup Cerebras, including during periods when OpenAI repeatedly discussed acquiring the chipmaker. This year, OpenAI announced it would spend heavily on Cerebras chips.

Brockman also confirmed he holds a stake in fusion startup Helion Energy, in which Altman previously invested hundreds of millions of dollars. In March, Altman resigned from Helion’s board as the two companies explored collaboration.

Musk, the world’s richest person, alleges that OpenAI, Altman, and Brockman promised to build a non-profit prioritizing AI safety in exchange for his $38 million donation and personal assistance, but later pivoted to a for-profit entity for personal gain. His claims include breaches of charitable trust and unjust enrichment.

OpenAI responded that Musk, who serves as CEO of Tesla and SpaceX, is motivated by a desire to control OpenAI and is resentful of the company’s success after he left the board in 2018. The company also stated that Musk did not prioritize safety during his tenure and is now attempting to boost his own AI firm, xAI—a SpaceX subsidiary that lags behind OpenAI in user adoption.

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