OpenAI is now a For Profit, public benefit corporation

OpenAI has finalized a recapitalization that restructures the organization by separating its AI research arm into a for-profit company owned by a non-profit foundation.

The non-profit is now formally called the OpenAI Foundation, which retains control of the for-profit business — restructured as OpenAI Group, a public benefit corporation — according to a blog post from chair Bret Taylor.

The OpenAI Foundation now holds an equity stake in the for-profit valued at roughly $130 billion, and under the new arrangement, it will receive additional ownership if the for-profit reaches future valuation milestones.

Taylor said the structure is designed so that the foundation’s stake increases alongside OpenAI’s commercial success, enabling the non-profit to use that appreciation to fund its philanthropic mission.

“We believe that the world’s most powerful technology must be developed in a way that reflects the world’s collective interests,” Taylor wrote. “The completion of our recapitalization gives us the ability to continue pushing the frontier of AI and ensures the progress benefits everyone.”

Under the new structure, the Foundation owns 26% of the for-profit entity, and also holds warrants that allow it to acquire additional shares if valuation targets are met.

Microsoft — an early investor — owns about 27% of the for-profit company, while the remaining 47% is held by employees and other investors. Microsoft noted in a separate blog post that the agreement extends its intellectual property rights to OpenAI models through 2032.

The restructuring follows criticism from some investors, including co-founder Elon Musk, over OpenAI’s transition toward a for-profit model.