OpenAI's New Corporate Structure

OpenAI has completed a significant corporate restructuring, establishing a for-profit entity, OpenAI Group PBC, valued at $500 billion. This move aims to provide more flexibility in fundraising and streamline governance for advancing artificial general intelligence (AGI). The restructuring gives Microsoft a substantial stake in OpenAI, approximately 27%, worth roughly $135 billion. The original non-profit, renamed OpenAI Foundation, retains oversight through a 26% stake valued at around $130 billion and will use its share to fund philanthropic work. The remaining 47% is held by employees and other investors.

Microsoft will retain intellectual property rights to OpenAI's models and products until 2032. Azure remains OpenAI's primary cloud platform, with OpenAI committing to purchase $250 billion in services. However, Microsoft no longer has first refusal as a compute provider, and OpenAI can now develop products with third parties. The OpenAI Foundation will dedicate $25 billion to health breakthroughs and AI safety initiatives. An independent panel will verify any claims of achieving AGI, potentially revisiting the agreement.

CEO Sam Altman will not receive equity in the restructured company, and his salary remains unchanged. OpenAI aims to significantly expand its data centre capacity, targeting 1 gigawatt per week, while reducing construction costs. This restructuring is designed to allow OpenAI to move with greater agility while safeguarding its mission.