OpenAI has completed a significant restructuring, resulting in the company being divided into two distinct entities: a non-profit called the OpenAI Foundation, and a for-profit called OpenAI Group PBC.

Microsoft, which has placed a strong emphasis on integrating AI into its products and services, currently owns 27 percent of OpenAI’s for-profit business. This partnership dates back to 2019 and continues to be a key element of both companies’ AI strategies.

In a recent blog post, OpenAI announced the details of its corporate restructuring. The non-profit OpenAI Foundation has committed $25 billion to advancing health initiatives and minimizing the risks associated with artificial intelligence. Additionally, the non-profit holds approximately $130 billion in equity stakes within OpenAI’s for-profit business.

Bret Taylor, Chair of the OpenAI Board of Directors, explained the relationship between the two entities: “The more OpenAI succeeds as a company, the more the non-profit’s equity stake will be worth, which the non-profit will use to fund its philanthropic work.”

In a separate update, OpenAI also highlighted its ongoing relationship with Microsoft. Microsoft supported the company’s decision to establish a for-profit arm, and its $135 billion investment represents 27% ownership of OpenAI’s for-profit shares.

This restructuring positions OpenAI to continue driving advances in AI while supporting important philanthropic missions through its non-profit foundation.
https://www.shacknews.com/article/146547/open-ai-corporate-restructure-non-profit