OpenAI restructures as for-profit entity under nonprofit control amid Microsoft partnership revisions

OpenAI has transitioned to a public benefit corporation structure, enabling it to operate more like a traditional company while maintaining its commitment to public and social good. This restructuring places OpenAI Group PBC under the control of the nonprofit OpenAI Foundation, which holds a 26% stake, while Microsoft owns about 27%, and the rest is held by employees and other investors. Microsoft's stake, valued at approximately $135 billion, reflects a significant return on its $13.8 billion investment, and the company retains exclusive IP rights and Azure API exclusivity until at least 2032, including for models developed post-AI general intelligence (AGI). The partnership agreement now requires any claim of AGI achievement by OpenAI to be verified by an independent expert panel, introducing more transparency and oversight as AI technology advances. OpenAI’s new corporate structure allows it to raise funds freely and pursue partnerships while committing $25 billion to initiatives focused on global health innovation and AI resilience. This move positions OpenAI to compete robustly with tech giants, continue expanding its AI capabilities, and maintain a strategic relationship with Microsoft, especially through Azure cloud services.