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OpenAI on Tuesday said it had completed its recapitalization, splitting the AI lab into a for-profit corporation nested inside a non-profit foundation. It\u2019s the end result of a complex legal process that had been strenuously resisted by its estranged co-founder, Elon Musk.<\/p>\n
Under the new structure, the non-profit OpenAI Foundation will have legal control over a public benefit corporation called OpenAI Group, which is free to raise funding or acquire companies without legal restraint. The Foundation will hold a significant stake in OpenAI Group, and will appoint its board of directors. <\/p>\n
\u201cWe believe that the world\u2019s most powerful technology must be developed in a way that reflects the world\u2019s collective interests,\u201d OpenAI chairman Brett Taylor wrote in a blog post<\/a>. \u201cThe close of our recapitalization gives us the ability to keep pushing the frontier of AI, and an updated corporate structure to ensure progress serves everyone.\u201d<\/p>\n Under the new structure<\/a>, the OpenAI Foundation will own 26% of the for-profit, with a warrant for additional shares to be granted if the company continues to grow. Microsoft, an early investor in OpenAI, will hold a roughly 27% stake, valued at about $135 billion, with the remaining 47% held by investors and employees.<\/p>\n According to a separate blog post by Microsoft<\/a>, the deal will also extend Microsoft\u2019s IP rights to OpenAI models through 2032. If OpenAI ever declares that it has achieved its long-held goal of artificial general intelligence, the deal will also require it to submit to an independent expert panel for verification.<\/p>\n Prior to this recapitalization, OpenAI was operating as a non-profit under strict equity restrictions \u2014 a position that became increasingly untenable as the company\u2019s fundraising became more ambitious. In April, Softbank announced an unprecedented $30 billion investment into OpenAI<\/a>, contingent on the company\u2019s successful conversion into a for-profit. On Saturday, The Information reported<\/a> that the final installment of the funding had been sent, signaling a possible breakthrough in the restructuring.<\/p>\n There have been a number of legal efforts to block or otherwise influence the restructuring, most notably from Elon Musk, who at one point offered to acquire the company for $97.4 billion<\/a>. State attorneys general from California and Delaware also made inquiries into the process, and Taylor cited them specifically as a positive influence on the discussions.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco<\/span> \u201cWe made several changes as a result of those discussions and we believe OpenAI\u2014and as a result, the public we serve\u2014are better for them,\u201d Taylor wrote.<\/p>\n In the wake of the news, CEO Sam Altman announced an open livestream<\/a> with chief scientist Jakub Pachocki to answer questions from the public. The event will begin at 10:30 a.m. Pacific Time.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 27-29, 2025<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n