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1h ago

OpenAI Completes Recapitalization at $500 Billion as Microsoft Takes 27% Stake

The shift gives OpenAI a path to raise large capital under nonprofit oversight.

OpenAI and Microsoft logos
FILE - The OpenAI logo appears on a mobile phone in front of a computer screen with random binary data, March 9, 2023, in Boston. (AP Photo/Michael Dwyer, File)
OpenAI has completed its for-profit restructuring.
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Overview

  • OpenAI’s commercial arm is now OpenAI Group PBC, a public benefit corporation controlled by the OpenAI Foundation.
  • Microsoft holds roughly 27% (about $135 billion) and keeps product and model rights through 2032, with any AGI declaration subject to verification by an independent expert panel.
  • OpenAI agreed to purchase about $250 billion of Azure services, while Microsoft relinquishes its right of first refusal on cloud and has no rights to any consumer hardware.
  • Regulatory reviews advanced as Delaware issued a Statement of No Objection and California’s attorney general said the state will not oppose the recapitalization after negotiating concessions.
  • The Foundation’s equity stake is valued near $130 billion with an initial $25 billion program for health and AI resilience, and the structure clears a route to broader fundraising and potential public markets access.