OpenAI completes restructuring, Microsoft becomes major shareholder with 27% stake

OpenAI announced on Tuesday that it has completed its recapitalization, establishing a structure in which its nonprofit now holds a controlling stake in its for-profit business. OpenAI stated that its nonprofit is now called the OpenAI Foundation and holds approximately $130 billion in equity in its for-profit arm. OpenAI stated that its for-profit arm has now become a public benefit corporation, called OpenAI Group PBC. Under the new structure, the OpenAI Foundation will hold a 26% stake in the for-profit arm, while current and former employees and investors will collectively hold 47%. Microsoft, which has invested in OpenAI since 2019 and has invested over $13 billion, expressed support for the restructuring and stated that its investment in Open AI Group PBC is now valued at approximately $135 billion, representing a 27% diluted stake in the company. "The more successful OpenAI is as a company, the more valuable the nonprofit's equity will be, which will be used to fund its public benefit efforts," OpenAI wrote in a blog post. (Jinshi)