OpenAI has completed its for-profit restructuring and struck a new deal with Microsoft

The controversial restructuring of OpenAI for profit has finally been completed, along with a new deal with Microsoft.

The company’s for-profit arm is now a public benefit corporation, called OpenAI Group PBC. The nonprofit is now called the OpenAI Foundation and “owns shares in the for-profit organization currently valued at approximately $130 billion” — and will start with a $25 billion focus on healthcare, disease, and “AI resilience,” according to OpenAI Blog post. The nonprofit will also receive “additional ownership” after the for-profit OpenAI reaches an unspecified evaluation stage.

This news comes after more than a year of OpenAI negotiations with the California and Delaware attorneys general’s offices — if they don’t ultimately bless the restructuring, OpenAI won’t be able to move forward. It also comes on the heels of a long, thorny legal battle with Elon Musk, who has sued the company and CEO Sam Altman in his attempts to stop the conversion. Musk co-founded OpenAI in 2015 as a non-profit research lab.

Last month, the company switched its original plan — a capped profit model where the nonprofit no longer controls any aspect of the rest of the company — to a revised plan, under which OpenAI’s nonprofit parent would own a stake of up to $100 billion and continue to oversee the company.

If OpenAI doesn’t announce the completed restructuring by New Year’s Eve, it could lose Up to $10 billion From SoftBank’s previously announced investment.