OpenAI has completed a major restructuring, dividing the company into two distinct entities: a non-profit called the OpenAI Foundation, and a for-profit known as OpenAI Group PBC.
Microsoft, which has focused heavily on integrating AI into its products and services, currently owns 27 percent of OpenAI’s for-profit business. This strategic partnership highlights Microsoft’s commitment to advancing AI technology alongside OpenAI.
In a recent blog post announcing the corporate restructuring, OpenAI detailed that its non-profit foundation is committing $25 billion towards advancements in health and efforts to minimize the risks associated with artificial intelligence. The non-profit holds approximately $130 billion in equity stakes within OpenAI’s for-profit business.
“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,” wrote Bret Taylor, Chair of the OpenAI Board of Directors.
In a separate update on OpenAI’s relationship with Microsoft—which began in 2019—the company confirmed that Microsoft supported the creation of the for-profit arm. Microsoft’s $135 billion stake in OpenAI represents 27% of the company’s shares, further solidifying their collaborative efforts in AI development.
https://www.shacknews.com/article/146547/open-ai-corporate-restructure-non-profit