05:51 AM EDT, 09/27/2024 (MT Newswires) -- (Updates with OpenAI's response in the last paragraph.)

Microsoft ( MSFT )-backed (MSFT) OpenAI is working on plans to restructure its core business into a for-profit organization, multiple media outlets reported late Wednesday, citing unnamed sources familiar with the matter.

The OpenAI non-profit will continue to operate and hold a minority stake in the for-profit firm, Reuters reported, citing the sources.

"We remain focused on building AI that benefits everyone, and we're working with our board to ensure that we're best positioned to succeed in our mission. The non-profit is core to our mission and will continue to exist," Reuters quoted an OpenAI spokesperson as saying.

Chief Executive Sam Altman is expected to be granted a 7% equity stake in the business, which could be worth $150 billion. Bloomberg reported, citing the people.

The plans are still under discussion and a timeline has not been finalized, Bloomberg quoted one of the sources.

"The board has had discussions about whether it would be beneficial to the company and our mission to have Sam be compensated with equity, but no specific figures have been discussed nor have any decisions been made," an OpenAI spokesperson referred to Chairman Bret Taylor's statement to Bloomberg through an email to MT Newswires.

Price: 432.35, Change: +1.04, Percent Change: +0.24