OpenAI completes for-profit recapitalization

OpenAI said Tuesday it has completed its recapitalization, splitting the AI ​​lab into a for-profit company housed within a nonprofit. It’s the end result of a complex legal process that its estranged co-founder, Elon Musk, has staunchly resisted.

Under the new structure, the OpenAI nonprofit will have legal control over a public benefit corporation called OpenAI Group, which is free to raise funding or acquire companies without legal restrictions. The Foundation will own a significant stake in OpenAI Group, and will appoint its board of directors.

“We believe that the world’s most powerful technology must be developed in a way that reflects the collective interests of the world,” Brett Taylor, president of OpenAI, wrote in an article. Blog post. “The completion of our recapitalization gives us the ability to continue pushing the boundaries of AI, and a refreshed corporate structure to ensure progress serves everyone.”

Under the new structureThe OpenAI Foundation will own 26% of the for-profit organization, with additional shares guaranteed if the company continues to grow. Microsoft, an early investor in OpenAI, will own a stake of about 27%, worth about $135 billion, with investors and employees owning the remaining 47%.

according to Separate blog post by MicrosoftThe deal will also expand Microsoft’s intellectual property rights to include OpenAI models through 2032. If OpenAI announces that it has achieved its long-term goal of artificial general intelligence, the deal will also require it to be submitted to an independent expert panel for verification.

Prior to this recapitalization, OpenAI had operated as a nonprofit under strict equity restrictions — a situation that became increasingly untenable as the company’s fundraising became more ambitious. In April, SoftBank announced An unprecedented $30 billion investment in OpenAIconditional on the successful conversion of the company into a for-profit company. on saturday, Information reported The final tranche of financing has been sent, indicating a potential breakthrough in restructuring.

There have been a number of legal efforts to block or otherwise influence the restructuring, most notably from Elon Musk, who at one time It offered to acquire the company for $97.4 billion. State attorneys general from California and Delaware have also investigated the process, and Taylor specifically cited it as having a positive impact on the discussions.

“We have made many changes as a result of those discussions and believe that OpenAI — and as a result, the audiences we serve — is better for them,” Taylor wrote.

Following the news, CEO Sam Altman announced Open live broadcast With Chief Scientist Jacob Paczucki to answer audience questions. The event will start at 10:30 AM PT.