OpenAI Establishes For-Profit Company In Restructuring Change Involving Microsoft

Topline

OpenAI established a for-profit arm valued at $500 billion Tuesday, doing so through a long-anticipated corporate restructure that provides Microsoft with a large stake in the new company as it looks to expand on its rapidly expanding artificial intelligence offerings.

Key Facts

Microsoft, a longtime OpenAI investor, will hold a roughly 27% stake in the for-profit company known as OpenAI Group PBC, while a 26% stake in the company will be held by the OpenAI Foundation, OpenAI’s non-profit.

Employees both past and present, as well as other investors, will hold the remaining 47% stake in OpenAI Group PBC, which is valued at $500 billion.

The OpenAI Foundation will control the for-profit company through its board.

This is a developing story. Check back for updates.