OpenAI has completed a major restructuring, resulting in the company being divided into two distinct entities: a non-profit organization called the OpenAI Foundation, and a for-profit business known as OpenAI Group PBC.
Microsoft, which has placed significant emphasis on integrating AI into its own products and services, currently owns 27 percent of OpenAI’s for-profit arm. This strategic partnership dates back to 2019 and continues to play a key role in OpenAI’s growth.
In a recent blog post announcing the restructuring, OpenAI revealed that its non-profit foundation is committing $25 billion towards advancements in health and efforts to minimize the risks associated with artificial intelligence. The non-profit holds approximately $130 billion in equity stakes in OpenAI’s for-profit business.
“The more OpenAI succeeds as a company, the more the non-profit’s equity stake will be worth, which the non-profit will use to fund its philanthropic work,” wrote Bret Taylor, Chair of the OpenAI Board of Directors.
Additionally, OpenAI published a separate update on its ongoing relationship with Microsoft. The tech giant supported the decision to establish a for-profit wing, and its $135 billion stake now represents 27% ownership of OpenAI’s shares.
This new structure aims to balance OpenAI’s mission-driven goals with the ability to attract capital and scale its technologies responsibly.
https://www.shacknews.com/article/146547/open-ai-corporate-restructure-non-profit