OpenAI’s Half-Trillion Restructuring Hands Microsoft a $135 B Stake – and Revs Up the ‘AGI Arms Race’
In a milestone moment for the AI industry, OpenAI has officially restructured itself to unite a half-trillion-dollar for-profit business with its original nonprofit mission. The company announced on Oct. 28 that it “completed its recapitalization, simplifying its corporate structure”, with the nonprofit arm retaining control over the newly created OpenAI Group PBCopenai.comeconomictimes.indiatimes.com. Under this novel setup, the OpenAI Foundation holds a 26% stake valued around $130 billion and can appoint all board directors, effectively steering the shipmedium.commedium.com. Meanwhile, investors and employees own roughly 47%, and Microsoft holds 27% after investing a total of ~$13.8 billion since 2019medium.com. Despite owning a minority of shares, the Foundation’s special voting rights ensure it can override profit motives if necessary to stick to OpenAI’s charter of benefiting humanitymedium.com.