OpenAI Completes Transition to For-Profit Model, Microsoft Acquires 27% Ownership Stake

OpenAI's Transition: OpenAI has transitioned from a capped-profit structure to a for-profit public benefit corporation, allowing it to raise significant capital and potentially pursue an IPO, while maintaining oversight through the OpenAI Foundation.

Microsoft's Investment: Microsoft acquired a 27% stake in OpenAI valued at $135 billion, gaining access to its AI models until 2032, while relinquishing exclusive cloud infrastructure rights and veto powers over acquisitions.

Governance and Control: The OpenAI Foundation retains 26% control of the new entity, ensuring the company's mission to develop AGI for humanity remains intact, with Sam Altman continuing as CEO without taking equity in the restructured organization.

Market Impact and Future Plans: OpenAI is valued at $500 billion and is expanding its product offerings, with plans to establish a panel for verifying AGI milestones, while Microsoft's market capitalization has surpassed $4 trillion following the investment.