OpenAI completes restructuring, Microsoft becomes major shareholder with 27% stake

BlockBeats News, October 28, OpenAI announced on Tuesday that it has completed a capital restructuring, establishing its structure as a nonprofit institution holding a for-profit business. OpenAI stated that its nonprofit entity has now been renamed the OpenAI Foundation and holds equity worth approximately $130 billions in its for-profit division.

OpenAI said that its for-profit division has now become a public benefit corporation, named OpenAI Group PBC. Under the new structure, the OpenAI Foundation will hold 26% of the for-profit division's shares, while current and former employees and investors collectively hold 47%.

Microsoft has invested in OpenAI since 2019, with a cumulative investment exceeding $13 billions. Microsoft expressed support for this restructuring and stated that its investment in OpenAI Group PBC is now valued at approximately $135 billions, equivalent to 27% of the company's diluted shares.