OpenAI Finalises For-Profit Shift

OpenAI has completed its recapitalisation, restructuring into a for-profit corporation controlled by a non-profit foundation. The OpenAI Foundation will retain control of the for-profit entity, ensuring the company's mission remains central. The restructuring allows OpenAI to raise more capital and profit from its AI technology while remaining under the original non-profit's control.

The OpenAI Foundation now holds equity in the for-profit, valued at approximately $130 billion. This will allow the non-profit to fund philanthropic work, initially focusing on health and AI resilience with a $25 billion commitment. Microsoft now holds a 27% equity stake in OpenAI Group PBC, valued at around $135 billion, with extended exclusive IP rights to OpenAI's models through 2032.

The restructuring, which followed discussions with the Attorneys General of California and Delaware, aims to balance commercial success with the mission of ensuring AI benefits humanity.