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OpenAI Reshapes Ownership as Microsoft Nears 30% Stake, xAI Ramps Up 'World Model' Push

The race now favors players with massive compute, elevating Microsoft's role at OpenAI.

Overview

  • A reported employee share sale values OpenAI at about $500 billion, alongside multibillion‑dollar chip deals with NVIDIA and AMD to support a plan to deploy $1 trillion in compute over the coming years.
  • Under the proposed structure, Microsoft's holding would be roughly 30%, with employees and the nonprofit parent each near 30%, according to people cited by the Financial Times.
  • The reorganization would remove the nonprofit’s special shareholder rights and instead give it the power to nominate directors of the for‑profit subsidiary, a change described as addressing concerns from state attorneys general.
  • Elon Musk is suing to block OpenAI’s transformation, arguing it departs from the group’s founding mission.
  • xAI is hiring to build a 'world model,' including two NVIDIA researchers, as it targets interactive 3D game environments with potential robotics uses; Musk says he aims to release an AI‑generated game by the end of next year, and xAI has released a free upgraded image and video generator.