OpenAI completes its for-profit recapitalization
Update: 2025-10-28
Description
OpenAI undergoes a significant transformation, becoming a for-profit company managed by a non-profit foundation. The OpenAI Foundation now controls 26% of the new for-profit arm, OpenAI Group, with Microsoft holding 27%. This setup allows OpenAI to raise more funds and acquire other companies. The transition was driven by the need for more resources to advance AI, following a $30 billion investment offer from SoftBank. Despite legal challenges and resistance from co-founder Elon Musk, the restructuring has been approved by regulators, with conditions such as managing AI risks in California. OpenAI's leadership will discuss the changes in a public livestream.
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