OpenAI has today revealed new details regarding its highly anticipated organizational restructuring plan.
The developer of ChatGPT also indicated that Microsoft has expressed preliminary support for the initiative. As one of OpenAI's key financial backers, Microsoft has contributed over $13 billion in funding and cloud infrastructure over the past six years.
Established in 2015 as a non-profit artificial intelligence research laboratory, OpenAI later created a for-profit division known as OpenAI LLC four years later, tasked with developing and commercializing AI products.
In 2024, OpenAI initiated plans to transition into a for-profit entity. The proposed reorganization drew attention from attorneys general in California and Delaware, prompting executives to abandon the effort.
This past May, OpenAI CEO Sam Altman announced a scaled-back version of the restructuring plan. This revised approach would allow the non-profit parent organization to continue overseeing its for-profit division responsible for commercialization, while proposing significant structural changes to the for-profit entity.
Bret Taylor, chairman of the OpenAI board, explained today that the plan would grant the non-profit parent organization equity in the for-profit division valued at over $100 billion. According to the executive, these funds will be used by the non-profit to support charitable initiatives, with three projects slated to launch in the near future.
"As part of the next phase, the OpenAI non-profit has opened applications for its first $50 million in funding, which will support non-profits and community organizations in three key areas: AI literacy and public understanding, community innovation, and economic opportunity," Taylor wrote in a blog post.
The executive also noted that Microsoft, one of OpenAI's largest investors, has given preliminary approval to the plan through a non-binding memorandum of understanding. "We are actively working to finalize contractual terms in the definitive agreement," Taylor added.
The proposed restructuring includes additional elements, such as transforming the for-profit division into a public benefit corporation (PBC). A PBC is required to balance shareholder returns with public interest, a structure already adopted by Anthropic PBC, one of OpenAI's best-funded startup rivals.
OpenAI also proposed eliminating the current profit cap for investors. This change could make it easier for the AI provider to raise new capital. The yet-to-be-profitable company will require billions more to manage its rapidly growing infrastructure costs.
Earlier this year, SoftBank Group announced plans to lead a potential $40 billion funding round for OpenAI, with nearly half of that investment reportedly contingent on the successful completion of the AI company's restructuring plan.
