OpenAI restructures into two entities as Microsoft deepens $135bn ties

The non-profit, now named the OpenAI Foundation, will hold a $130 billion stake in the for-profit arm, OpenAI Group PBC, a public benefit corporation.

In a statement, the AI giant said: “The OpenAI Foundation and OpenAI Group will work in concert to advance solutions to hard problems and opportunities posed by AI progress.

“This includes making intelligence a tool that everyone can benefit from, building safe and aligned systems, turbocharging scientific discovery, and strengthening global cooperation and resilience.”

Founded in 2015 as a non-profit, OpenAI shifted in 2019 to a “capped-profit” model. By 2024, it had signalled plans to become a fully for-profit company.

This comes as the company reportedly held discussions with the Attorneys General of California and Delaware for nearly a year before finalising the change.

Alongside the restructuring, Microsoft revealed that its investment in OpenAI’s for-profit arm is now valued at $135 billion, representing a 32.5% stake on an as-converted basis.

“Since 2019, Microsoft and OpenAI have shared a vision to advance artificial intelligence responsibly and make its benefits broadly accessible. What began as an investment in a research organisation has grown into one of the most successful partnerships in our industry,” the company said.

“As we enter the next phase of this partnership, we’ve signed a new definitive agreement that builds on our foundation, strengthens our partnership, and sets the stage for long-term success for both organisations.”

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