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OpenAI has undergone a significant restructuring, solidifying its non-profit oversight of its for-profit arm and forging a renewed partnership with Microsoft. This reorganization centers around the newly established OpenAI Foundation, positioned as a philanthropic entity holding a substantial $130 billion equity stake in the for-profit OpenAI Group PBC.

OpenAI Group PBC is legally committed to OpenAI’s original mission. The Foundation’s assets will initially fund a $25 billion investment in global health initiatives and AI safety and resilience efforts. The reorganization was finalized after discussions with the Attorneys General of California and Delaware, ensuring regulatory compliance.

Microsoft’s investment in OpenAI is now valued at $135 billion, granting them a 27% stake in OpenAI Group PBC. While Microsoft retains its exclusive position as the Azure API provider for OpenAI’s most advanced AI models until Artificial General Intelligence (AGI) is achieved and independently verified, the updated agreement allows Microsoft to independently pursue AGI research. Simultaneously, OpenAI gains increased flexibility, including the freedom to release open-weight models and serve U.S. government national security interests across any cloud platform.