Open AI to convert its primary business into for-profit corporation
As part of the restructuring, Microsoft, an early investor in OpenAI, now holds a 27% stake. Meanwhile, the original non-profit parent organization that has overseen OpenAI since its inception retains a $130 billion share, which could increase in value over time.
This change concludes nearly a year of discussions and disagreements involving state attorneys general, investors, and the philanthropic community, centering on whether OpenAI could maintain its mission while adopting a more traditional corporate model.
The revised structure is expected to support OpenAI in securing additional funding, attracting skilled professionals, and possibly laying the groundwork for a future initial public offering. Delaware and California authorities had been reviewing the proposed transition, and Attorney General Kathy Jennings confirmed she had no objections, effectively concluding the prolonged negotiations over governance and the balance of power between the non-profit board and for-profit investors.
“OpenAI has completed its recapitalization, simplifying its corporate structure,” stated Bret Taylor, chair of OpenAI’s board, in a blog post.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
