Restructuring Finalized

OpenAI finalized a restructuring that converted the company into a public benefit corporation and granted Microsoft a 27% ownership stake valued at roughly $135B.

Context

OpenAI launched in 2015 as a nonprofit research organization focused on artificial intelligence development. Microsoft first invested in the company in 2019, beginning a partnership that would grow over the following years. Since launching ChatGPT in 2022, OpenAI transformed from a research organization into a commercial company with roughly 800M weekly users. Microsoft has invested over $13B in OpenAI since 2019, making it the company's largest external shareholder.

Restructuring Complete

The restructuring concluded nearly a year of negotiations between OpenAI, its investors, and regulators who oversee nonprofit organizations. The agreement converted OpenAI into a public benefit corporation, a type of company legally required to balance profits with public interests.