OpenAI's Nonprofit Parent to Hold Over $100 Billion Stake Amid Microsoft Partnership

OpenAI announced on Thursday that its nonprofit parent organization will retain oversight and acquire an equity stake exceeding $100 billion in the company's for-profit subsidiary. This development follows a nonbinding memorandum of understanding with Microsoft, outlining the next phase of their partnership.

OpenAI, recently valued at $500 billion, stated that this structure will position the nonprofit as "one of the most well-resourced philanthropic organizations in the world," enabling continued capital raising.

Microsoft, which has invested over $13 billion in OpenAI since 2019, remains the exclusive provider of cloud computing services essential for OpenAI's AI development. Both companies are actively working to finalize contractual terms in a definitive agreement, focusing on delivering AI tools grounded in a shared commitment to safety.

OpenAI's restructuring has attracted regulatory attention. California Attorney General Rob Bonta is investigating the proposed changes to the company's finances and governance, emphasizing the importance of maintaining the nonprofit's safety mission.

The company has also initiated a $50 million grant program to support nonprofit and community organizations in areas such as AI literacy and economic opportunity.

OpenAI's corporate structure and nonprofit mission are subjects of a lawsuit filed by co-founder Elon Musk, alleging a deviation from the original commitment to develop AI for humanity's benefit.