OpenAI completes its for-profit recapitalization

OpenAI said Tuesday that it has completed its recapitalization by spinning off the AI ​​lab into a nonprofit corporation housed inside a nonprofit foundation. It was the end result of a complex legal process that was fiercely resisted by its estranged co-founder Elon Musk.

Under the new structure, the nonprofit OpenAI Foundation will have legal control over a public benefit corporation called the OpenAI Group, which is free to raise funds or acquire companies without legal constraints. The foundation will hold a significant stake in the OpenAI Group and appoint its board of directors.

“We believe that the world’s most powerful technologies should evolve in a way that reflects the world’s collective interests,” wrote OpenAI Chairman Brett Taylor. Blog post. “The completion of our recapitalization gives us the ability to push the boundaries of AI and an updated corporate structure to ensure progress for all.”

Under the new structureThe OpenAI Foundation will own 26% of the profits, with a warrant for additional shares if the company continues to grow. Microsoft, an early investor in OpenAI, will hold about a 27% stake, valued at about $135 billion, with the remaining 47% held by investors and employees.

According to A separate blog post by MicrosoftThe agreement also extends Microsoft’s IP rights to OpenAI models through 2032 If OpenAI ever declares that it has achieved its long-held goal of artificial general intelligence, the agreement must be submitted to an independent expert panel for verification.

Prior to this recapitalization, OpenAI was operating as a nonprofit under strict equity restrictions—a position that became increasingly untenable as the company’s fundraising became more ambitious. In April, SoftBank announced An unprecedented $30 billion investment in OpenAIContribute to the successful transition of a for-profit company. Saturday, Information provided The final tranche of funds has been sent, indicating possible progress in reconstruction.

There have been several legal attempts to block or otherwise affect the restructuring, most notably from Elon Musk, who at one point The company offered to be acquired for $97.4 billion. State attorneys general in California and Delaware have also inquired about the process, and Taylor specifically cited it as a positive influence in the discussion.

“We’ve made several changes as a result of those discussions and we believe OpenAI—and, as a result, the public we serve—is better for them,” Taylor wrote.

Following the news, CEO Sam Altman announced An open livestream with Chief Scientist Jakub Pachocki to answer questions from the public. The event will begin at 10:30 a.m. Pacific Time.