OpenAI Goes For-Profit and Microsoft Owns 27 Percent
OpenAI has completed its "recapitalization", with a non-profit, the OpenAI Foundation, controlling a new for-profit business, OpenAI Group PBC.
Microsoft owns approximately 27 percent of OpenAI Group PBC, valued at about $135 billion, given OpenAI's recent valuation.
"We've signed a new definitive agreement with OpenAI that builds on our foundation, strengthens our partnership, and sets the stage for long-term success for both organizations."
The agreement preserves key elements, including OpenAI as Microsoft's frontier model partner and exclusive IP rights and Azure API exclusivity until Artificial General Intelligence (AGI).
Author's summary: OpenAI becomes for-profit with Microsoft owning 27%.
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