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OpenAI Group PBC

yogibearbullyogibearbull
edited December 17 in Other Investing
OpenAI has been in the news a lot and AI's future may depend on the success and failure of OpenAI.

OpenAI had also been going through an organizational restructuring and many past investments in OpenAI had been conditional to this restructuring. Regulations don't make it easy to change a nonprofit entity into a for-profit company. This was completed in October. So, there has been lot of news about the deals a "liberated" OpenAI has been making with other companies - ORCL deal has been among blockbuster deals.

Everybody and their uncle are rushing to make a deal, any deal, with OpenAI - companies and countries!

The details of OpenAI restructuring weren't reported at MFO. So, here they are. IMO, they are key to understanding what's going on.

At the top is nonprofit OpenAI Foundation with a substantial stake in the new for-profit public-benefit-corporation OpenAI Group PBC.

OpenAI PBC will have 26% stake by OpenAI Foundation and 27% by MSFT (diluted from 32.5%). MSFT will no longer be the exclusive provider of cloud services for OpenAI PBC, nor will it have first rights of refusal. But OpenAI will purchase additional $250 billion in cloud services from MSFT. OpenAI and MSFT will continue to share revenues and IP until 2032 or until the next phase of AGI (artificial general intelligence) is verifiably reached and confirmed; both companies can pursue AGI independently.

News https://www.cnbc.com/2025/10/28/open-ai-for-profit-microsoft.html
OpenAI Website https://openai.com/about/
OpenAI Structure https://openai.com/our-structure/
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