OpenAI CEO Sam Altman speaks at Snowflake Summit in San Francisco on June 2, 2025.
Justin Sullivan | Getty Images News | Getty Images
OpenAI announced Tuesday that it has completed a capital increase, strengthening its position as a nonprofit organization with control of its for-profit businesses.
The artificial intelligence startup said its nonprofit organization, now called the OpenAI Foundation, has about $130 billion worth of equity in the for-profit sector. According to OpenAI, its commercial arm is now a public benefit corporation called OpenAI Group PBC.
Under the new structure, the OpenAI Foundation will own 26% of the commercial company’s stock, and current and former employees and investors will own 47%.
microsoftThe company, which has invested more than $13 billion in OpenAI and already backed the company in 2019, said it supports OpenAI’s recapitalization and now holds an investment in PBC worth $135 billion, about 27% of the company on a diluted basis.
The company said it previously held a 32.5% stake in the commercial company on a conversion basis, excluding OpenAI’s recent funding round.
Microsoft stock rose 3% on Tuesday.
“The more successful OpenAI becomes as a company, the more valuable the nonprofit’s stock becomes, which the nonprofit then uses to fund its philanthropic efforts,” OpenAI said in a blog post.
OpenAI was founded in 2015 as a nonprofit research organization, but has recently become one of the fastest-growing commercial organizations on the planet. The startup is currently valued at $500 billion.
The company had announced plans to become a for-profit company in 2024, taking control away from nonprofit organizations and keeping it as an independent division. But after facing pressure from civic leaders and former employees, OpenAI announced in May that the nonprofit would retain control.
The OpenAI Foundation will commit an initial $25 billion to efforts to accelerate technological solutions for health advances and AI resiliency, OpenAI announced Tuesday.
As part of the announcement, Microsoft said that OpenAI has agreed to buy $250 billion in additional Azure services, but that Microsoft will no longer have the right of first refusal to become OpenAI’s compute provider.
The companies also outlined several additional changes to the partnership.
If OpenAI claims to have reached artificial general intelligence (AGI), a term used to describe AI systems that match or exceed human intelligence, those claims must be verified by an independent panel of experts, Microsoft said. The revenue sharing agreement between the companies remains in effect until the Commission verifies AGI.
Microsoft can now pursue AGI alone or in collaboration with third parties, and OpenAI can now co-develop some products with third parties.
OpenAI remains a Frontier Model Partner of Microsoft. Microsoft said intellectual property rights for both models and products will be extended until 2032, including post-AGI models. OpenAI consumer hardware is exempt from Microsoft intellectual property rights.
“As we embark on the next chapter of our partnership, our companies are better positioned than ever to continue developing great products that meet real-world needs and create new opportunities for everyone and every business,” Microsoft said in a statement.
Microsoft is scheduled to announce its first quarter 2026 financial results after the market closes on Wednesday.
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