"OpenAI said on Tuesday that it completed its restructuring - a move it has previously said is vital to attract the billions in future capital needed to remain competitive in the AI race. It also struck a new definitive agreement with Microsoft, its largest investor, crossing a key hurdle in the restructuring that could allow OpenAI to strike funding deals with other companies more easily."
""OpenAI has completed its recapitalization, simplifying its corporate structure. The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives," the company wrote in a blog post, referring to artificial general intelligence. The company added: "The nonprofit, now called the OpenAI Foundation, holds equity in the for-profit currently valued at approximately $130 billion, making it one of the best-resourced philanthropic organizations ever. The recapitalization also grants the Foundation additional ownership as OpenAI's for-profit reaches a valuation milestone.""
"OpenAI has a new structure that sees its nonprofit arm oversee a new public benefit corporation. CEO Sam Altman has said the restructuring, which should make it easier to attract investment, is necessary to stay competitive. Microsoft has a 27% stake in OpenAI's for-profit business as part of a new agreement, which loosens some past provisions."
OpenAI completed a recapitalization that places its nonprofit arm, now the OpenAI Foundation, in control of a newly formed public benefit corporation called OpenAI Group PBC. The Foundation holds equity in the for-profit currently valued at approximately $130 billion and will receive additional ownership as valuation milestones are met. A new definitive agreement with Microsoft grants Microsoft a 27% stake in the for-profit and loosens some prior provisions, enabling easier pursuit of funding deals. The restructuring aims to secure billions in capital to develop energy-intensive frontier AI models while aligning mission and commercial success.
Read at Business Insider
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