OpenAI plans to transform into a for-profit company, and non-profit organizations will hold $100 billion in shares

On September 12, Bloomberg reported that artificial intelligence research institute OpenAI and its largest shareholder, Microsoft, were nearing a major restructuring agreement. Under the agreement, OpenAI plans to restructure itself into a public benefit corporation controlled by a nonprofit.

Under this arrangement, the nonprofit would receive at least $100 billion in equity, representing approximately 20% of OpenAI's total valuation.

The two parties have signed a memorandum of understanding, in which Microsoft has pledged to maintain a deep partnership with OpenAI and support its research and innovation in AI. This move is believed to help OpenAI further expand its commercial applications and financial support while maintaining its original mission of ensuring AI benefits all humanity.

However, the restructuring plan still requires approval from the attorneys general of California and Delaware. Furthermore, OpenAI faces legal action from Tesla CEO Elon Musk, adding uncertainty to the transaction.

This potential restructuring is seen as a significant experiment in AI governance and capital structure, with potentially profound implications for the tech industry.