OpenAI has completed a major restructuring that divides the company into two distinct entities: a non-profit called the OpenAI Foundation and a for-profit called OpenAI Group PBC.
Microsoft, which has placed significant emphasis on integrating AI into its own products and services, currently owns 27 percent of OpenAI’s for-profit business. This strategic partnership dates back to 2019 and has grown stronger with the recent changes.
In a blog post announcing the restructuring, OpenAI outlined the mission of its non-profit arm. The OpenAI Foundation is committing $25 billion towards advancements in health and efforts to minimize the risks associated with AI technology. Notably, the non-profit holds approximately $130 billion in equity of the for-profit OpenAI Group PBC.
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 provided further details about its collaboration with Microsoft. The tech giant supported the creation of the for-profit segment, and its current $135 billion stake represents 27% ownership of OpenAI Group PBC.
This new structure allows OpenAI to balance its ambitious research and development goals with philanthropic initiatives aimed at responsible AI advancement.
https://www.shacknews.com/article/146547/open-ai-corporate-restructure-non-profit
