OpenAI has completed a restructuring, splitting itself into a nonprofit and a for-profit entity, the company announced Tuesday.
The nonprofit arm, now called the OpenAI Foundation, will have a $130 billion stake in a for-profit entity, the public benefit corporation OpenAI Group PBC.
“The OpenAI Foundation and the OpenAI Group will work together to find solutions to complex problems and discover the opportunities presented by the advancement of AI,” the company said. said in its blog announcing the restructuring. “This includes making intelligence a tool that everyone can benefit from, creating secure and consistent systems, accelerating scientific discovery, and strengthening global cooperation and resilience.”
OpenAI was founded in 2015 as a non-profit organization, but in 2019 it established a “limited profit” company under the control of a non-profit organization. In 2024, OpenAI said it plans to transform into a commercial company. This statement caused controversy. OpenAI leaders had been in talks for nearly a year with the California and Delaware attorneys general's offices before Tuesday's announcement.
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Along with the announcement of OpenAI's restructuring came news that Microsoft, which has invested in the organization since 2019, will now invest $135 billion in the organization's commercial arm. Microsoft said it owned a 32.5% stake in OpenAI Group PBC at the time of conversion, excluding the impact of OpenAI's recent funding rounds.
“Since 2019, Microsoft and OpenAI have shared a vision to promote artificial intelligence responsibly and ensure widespread access to its benefits,” OpenAI. said in a blog post. “What began as an investment in a research organization has grown into one of the most successful partnerships in our industry. As we enter the next phase of this partnership, we have signed a new definitive agreement that builds on our foundation, strengthens our partnership and sets the stage for long-term success for both organizations.”
The OpenAI Foundation also said on Tuesday it would devote $25 billion to two main areas: breakthroughs in health and disease treatments, and technical solutions for AI sustainability.
