OpenAI has completed a major corporate overhaul, which is officially converting from a capped-profit company into a for-profit entity under a nonprofit foundation.
Under the new structure, OpenAI’s commercial operations will now sit within a newly formed public-benefit corporation, while the OpenAI Foundation, which is the rebranded nonprofit, will retain oversight and hold an equity stake in the for-profit business.
The new framework gives OpenAI flexibility to attract investment, scale its operations, and potentially prepare for an initial public offering (IPO) in the future. The reorganisation also reflects the company’s transition from a research-focused lab into a global AI powerhouse with deep commercial ties across industries.
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Bret Taylor, OpenAI’s chairman, stated that, “the recapitalisation aims to simplify the company’s complex structure while maintaining its mission to ensure that artificial intelligence benefits humanity.
“The foundation will continue to appoint the board and oversee the company’s adherence to its public-benefit purpose,” Taylor stated.
Microsoft, OpenAI’s long-time strategic partner, has secured an estimated 27 percent ownership stake in the restructured company. Based on OpenAI’s new $500 billion valuation, Microsoft’s share is worth more than $100 billion, solidifying its influence within the fast-growing AI ecosystem.
