OpenAI announced on Tuesday that it has finalized a restructuring, separating its operations into a nonprofit organization and a for-profit enterprise.
The nonprofit division, now known as the OpenAI Foundation, will hold a $130 billion interest in the for-profit venture, designated as a public benefit corporation named OpenAI Group PBC.
“The OpenAI Foundation and OpenAI Group will collaborate to develop solutions for complex challenges and leverage opportunities presented by AI advancements,” the company stated in its blog post detailing the restructuring. “This encompasses making intelligence accessible for universal benefit, establishing secure and aligned systems, accelerating scientific breakthroughs, and enhancing worldwide cooperation and resilience.”
Initially founded as a nonprofit in 2015, OpenAI created a “capped-profit” entity overseen by the nonprofit in 2019. In 2024, OpenAI declared its intention to become a fully for-profit company, a move that generated considerable debate. Prior to Tuesday’s announcement, OpenAI executives had been engaged in discussions with the Attorneys General of California and Delaware for almost a year.
Coinciding with OpenAI’s restructuring announcement was the disclosure that Microsoft, an investor in the organization since 2019, now has a $135 billion investment in its for-profit division. Microsoft reported possessing a 32.5% stake in OpenAI Group PBC on an as-converted basis, not accounting for OpenAI’s recent financing rounds.
In a blog post, OpenAI stated, “Since 2019, Microsoft and OpenAI have maintained a shared vision for responsibly advancing artificial intelligence and ensuring its widespread accessibility.” The post continued, “What began as an investment in a research entity has evolved into one of the most prosperous collaborations in our sector. As we transition into the next stage of this partnership, we have executed a new definitive agreement that enhances our existing framework, fortifies our collaboration, and establishes a foundation for enduring success for both entities.”
The OpenAI Foundation additionally revealed on Tuesday its plan to allocate $25 billion towards two primary areas: advancements in health and disease cures, alongside developing technical solutions for AI resilience.