OpenAI completes restructure, solidifying Microsoft as a major shareholder
Update: 2025-10-28
Description
OpenAI, a leading AI research lab, has undergone a significant recapitalization, solidifying its nonprofit status while maintaining control over its for-profit operations. The nonprofit, now named OpenAI Foundation, holds a 26% stake in the for-profit side, OpenAI Group PBC. Microsoft, a major investor, now owns 27% of the public benefit corporation, valued at $135 billion. The recapitalization allows the Foundation to use its growing funds for philanthropy, with an initial commitment of $25 billion for health and AI safety breakthroughs. The business side sees OpenAI purchasing an additional $250 billion in Azure services from Microsoft, with new rules for AI general intelligence claims and collaborations with other partners. The deal secures Microsoft's role as OpenAI's main partner for advanced AI models until 2032, excluding hardware products.
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