OpenAI has agreed to transfer a stake worth at least $100 billion to its non-profit management fund and has reached preliminary financial settlements with Microsoft, steps that pave the way for a major reorganization and change in the company’s status.
OpenAI has agreed to transfer a stake worth at least $100 billion to its non-profit management fund and has reached preliminary financial settlements with Microsoft, steps that pave the way for a major reorganization and change in the company’s status.
According to The New York Times, OpenAI is seeking to move away from a nonprofit model and become a public benefit corporation. This format would allow the company to raise capital from a wider range of investors and potentially go public without losing its image as a socially-oriented organization.
However, the main obstacle remained the status of Microsoft, which from 2019 to 2023 invested more than $ 13 billion and received the right to almost half of OpenAI’s future profits. Without a review of these terms, the transition to the new model was effectively blocked. Now the parties have signed a memorandum of understanding that provides for a review of financial arrangements and the preservation of technology sharing.
At the same time, an important point remains: Microsoft will not have access to the most powerful OpenAI systems after the official recognition of the achievement of the level of AGI — artificial intelligence capable of matching the human brain. The wording of this provision has been slightly changed, but its essence has remained.
The new partnership comes amid pressure from regulators and criticism from experts who warn that OpenAI is straying from its original mission to focus on AI safety. The attorneys general of California and Delaware are investigating the reorganization process, and competitors — including Elon Musk — have publicly questioned the company’s transparency and social responsibility.
According to OpenAI Chairman Brett Taylor, the transfer of the stake will make the non-profit foundation one of the most powerful philanthropic players in the world. According to sources, it will own more than 20% of the shares of the renewed company, which will allow it to maintain influence on the balance sheet and control strategic directions of development even after OpenAI transitions to a commercial model.
Previously, dev.ua wrote about how OpenAI is negotiating with its main strategic investor, Microsoft Corporation, regarding changes in the structure of cooperation. These steps are aimed at preparing the company for a possible IPO (public offering).
