OpenAI has completed its long-anticipated recapitalization, establishing a for-profit subsidiary under the control of a new non-profit foundation — a move that cements its evolution from research lab to global AI powerhouse.
Under the new structure, the OpenAI Foundation will own 26% of the newly formed OpenAI Group, a public benefit corporation that can raise capital and acquire companies. Microsoft will retain a 27% stake worth about $135 billion, while investors and employees hold the remainder.
Chairman Brett Taylor said the change ensures OpenAI’s mission aligns with the “world’s collective interests” while enabling continued innovation.
The restructuring follows months of legal scrutiny and internal tension, including objections from co-founder Elon Musk, who attempted to block the move. State attorneys general from California and Delaware also intervened to demand safeguards.
Microsoft confirmed that the new agreement extends its intellectual property rights to OpenAI models through 2032 and establishes an independent expert review if OpenAI declares it has achieved artificial general intelligence (AGI).
CEO Sam Altman announced that he and chief scientist Jakub Pachocki will host a public livestream to discuss the transition and take questions.
