OpenAI has completed a major restructuring, resulting in the company being divided into two distinct entities: a non-profit called the OpenAI Foundation, and a for-profit called OpenAI Group PBC.
Microsoft, which has placed significant emphasis on integrating AI into its products and services, currently owns 27 percent of OpenAI’s for-profit business. This strategic partnership highlights Microsoft’s ongoing commitment to advancing artificial intelligence technologies.
In an official blog post, OpenAI announced its corporate restructuring and outlined the mission of its non-profit arm. The OpenAI Foundation is committing $25 billion to drive advancements in health and to minimize the risks associated with AI. Notably, the non-profit holds approximately $130 billion in equity stake in OpenAI’s for-profit business.
Bret Taylor, Chair of the OpenAI Board of Directors, explained the relationship between the two entities: “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, dating back to 2019. Microsoft supported the creation of OpenAI’s for-profit arm, and its $135 billion stake represents 27% ownership in the company’s shares.
This restructuring positions OpenAI to continue advancing AI technologies responsibly while leveraging the benefits of both non-profit and for-profit frameworks.
https://www.shacknews.com/article/146547/open-ai-corporate-restructure-non-profit
