Sam Altman, the co-founder and CEO of OpenAI, one of the most influential companies in artificial intelligence, earned a surprisingly modest salary of $76,001 in 2023.
This translates to $6,333 per month.
While this figure may seem startling for someone at the helm of such a prominent organisation, it aligns with Altman’s long-standing claims about his pay being tied to health insurance requirements.
The newly released tax filing also highlights key details about OpenAI’s financial practices, its leadership, and the wider implications of its nonprofit origins.
Altman has consistently maintained that he does not own equity in OpenAI, a decision he attributes to ethical considerations.
He believes that detaching personal wealth from the company’s success ensures impartiality in decision-making.
During a testimony before Congress, Altman remarked that his salary merely ensures his health insurance eligibility, reinforcing this commitment.
However, internal discussions have hinted at a potential shift.
Bloomberg reported that OpenAI has considered granting him equity, particularly as it transitions to a capped for-profit model.
This pay philosophy stands in stark contrast to Altman’s financial standing outside OpenAI.
With a net worth exceeding $2 billion, largely built on successful investments in companies like Uber, Airbnb, and Reddit, Altman remains one of Silicon Valley’s wealthiest figures.
His financial independence may well explain his decision to forgo traditional compensation at OpenAI.
In September 2024, reports surfaced that OpenAI is exploring the possibility of granting CEO Sam Altman a 7% equity stake, marking the first time he would own a part of the company.
This potential move coincides with discussions about OpenAI transitioning to a for-profit public benefit corporation, though the timeline for these changes remains uncertain.
Altman’s compensation and ownership structure have been under scrutiny, especially given his previous stance of being "paid enough for health insurance" and his claim of having no equity in OpenAI.
The news comes amid a series of senior management departures at the company, including Mira Murati, who recently announced her departure.
The filing sheds light on stark disparities in compensation within OpenAI’s leadership.
Ilya Sutskever, a co-founder and former chief scientist, earned $322,201 in 2023, significantly outpacing Altman’s earnings.
Sutskever, who played a significant role in Altman’s temporary ouster late last year, departed from OpenAI in May 2023 to launch his own AI venture.
Ilya Sutskever co-founded Safe Superintelligence Inc after his departure from OpenAI.
The leadership turmoil reached its peak in November when Altman was briefly replaced by Emmett Shear, the co-founder of Twitch.
Shear’s tenure lasted just ten days, during which he earned $3,720.
Twitch co-founder Emmett Shear took over briefly as interim CEO of OpenAI.
This equates to roughly $338.18 per day, according to the filing, reflecting the brief but eventful period of OpenAI’s operations under his leadership.
Despite its public prominence, OpenAI’s nonprofit entity reported relatively modest financials in its latest filing.
With net assets of just over $21 million at the close of 2023, the nonprofit's resources pale in comparison to the for-profit arm’s $6.6 billion raised in October of the same year.
The nonprofit received $5 million in public contributions, though the sources remain undisclosed.
OpenAI’s structure is unique, with a nonprofit overseeing multiple for-profit entities, including Aestas LLC, which manages equity for employees and investors.
This layered setup limits visibility into the organisation’s complete financial picture, particularly regarding equity-based compensation for its officers.
The filing highlights OpenAI’s growing commitment to funding initiatives beyond AI development.
In 2023, the organisation expanded its grants to support ethics and journalism research at New York University, economic opportunity studies at Operation Hope in Atlanta, and experiments in democratising AI rule-making processes.
Institutions like Harvard College, the University of Michigan, and the University of Washington received support for exploring the societal implications of AI.
A spokesperson for OpenAI emphasised the organisation’s dedication to global collaboration, stating,
“As part of our charter, we’re committed to collaborating globally with research and policy institutions to address AGI’s challenges.”
OpenAI’s nonprofit roots continue to shape its public image, even as it leans heavily on private investment to fuel its ambitious AI projects.
Altman’s lack of equity and modest salary represent a conscious effort to separate personal profit from corporate goals.
However, as the company navigates the complexities of transitioning to a for-profit model, debates over equity and leadership dynamics are unlikely to fade.
For now, Altman’s wealth remains tied to his prior investments rather than OpenAI’s meteoric rise, a financial anomaly in the competitive and high-stakes world of artificial intelligence.
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