OpenAI CEO Sam Altman recently admitted in an interview with Bari Weiss that he indirectly held shares in OpenAI through a Sequoia Capital fund, a statement that contradicts his previous claims of "not holding any equity in OpenAI."
The CEO explicitly stated during his testimony to Congress in 2023 that he did not own any shares in OpenAI, claiming he ran the company purely out of passion. However, in the latest interview, Altman changed his tune: "I used to hold some equity through the Sequoia fund, but later realized that fund was easier to sell and not worth holding onto."
OpenAI spokesperson Kayla Wood clarified: "Sam has never directly held shares in OpenAI. He held a small stake (less than a few percent) in a widely diversified fund under Sequoia Capital, which he later learned had minimal investment in OpenAI. Sam no longer has any ongoing commitment to that fund."
It is worth noting that Sequoia Capital first invested in OpenAI in 2021, two years after Altman took on the role of full-time CEO. At that time, OpenAI was valued at approximately $14 billion, and after the latest round of financing earlier this year, the valuation has soared to $157 billion. Details about Altman's investment through Sequoia, including the duration of the holdings and sale price, have yet to be disclosed.
This controversy arises as OpenAI attempts to transform its for-profit subsidiary into an independent company. At the same time, the company is facing a lawsuit from Elon Musk, accusing it of straying from its original non-profit mission. In response, Altman referred to Musk as a "bully" in the interview and accused Meta of trying to obstruct OpenAI's for-profit transition out of "malice."
According to OpenAI's corporate bylaws, its non-profit board must consist of a majority of independent directors, meaning they cannot hold equity in the company. Altman previously stated that this regulation was the reason he did not hold any equity. However, the discrepancies in his latest disclosures have raised questions about his actual stake in the company.
While most CEOs hold equity in the companies they operate, the issue of equity for the CEO of OpenAI, as a uniquely structured non-profit organization, has been a topic of considerable scrutiny. As the company transitions to a for-profit entity, Altman's actual stake in OpenAI may come under even more examination.