OpenAI has completed a significant restructuring, dividing the company into two distinct entities: a non-profit called the OpenAI Foundation and a for-profit called OpenAI Group PBC.
Microsoft, which has made AI a key focus across its products and services, currently owns 27 percent of OpenAI’s for-profit business. This corporate restructuring was announced in a recent blog post by OpenAI.
The non-profit OpenAI Foundation has committed $25 billion toward advancements in health and minimizing the risks associated with AI. Additionally, the non-profit holds approximately $130 billion in equity stakes in OpenAI’s for-profit arm. As Bret Taylor, Chair of the OpenAI Board of Directors, explains, “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.”
In a separate update, OpenAI detailed its ongoing relationship with Microsoft, which began in 2019. Microsoft supported the creation of OpenAI’s for-profit division, and its $135 billion stake represents 27% ownership of the company’s shares.
This restructuring aligns with OpenAI’s mission to balance innovative AI development with responsible stewardship and philanthropic goals.
https://www.shacknews.com/article/146547/open-ai-corporate-restructure-non-profit