OpenAI Restructures, Microsoft Takes For-Profit Stake

Microsoft and OpenAI announced a deal Tuesday that allows the maker of ChatGPT and the Atlas browser to restructure into a public benefit corporation (PBC), valuing OpenAI at $500 billion and clearing the way for it to become a publicly traded company.

The ownership stake is exclusively in OpenAI's for-profit arm. The overall company structure is divided into two distinct parts, and this investment is specifically in the commercial entity.

OpenAI's nonprofit is now called the OpenAI Foundation, and it holds an equity stake worth about $130 billion in its for-profit arm. OpenAI said its for-profit arm is now a public benefit corporation called OpenAI Group PBC.

Under the new structure, the OpenAI Foundation will hold a 26% stake in the for-profit, with 47% held by current and former employees and investors.

Microsoft will hold a stake of about $135 billion, or 27%, in OpenAI Group PBC, which the OpenAI Foundation will control.

The restructuring of OpenAI into a public-benefit corporation and the deepened investment by Microsoft signal a turning point in how cutting-edge AI firms are being anchored in the marketplace. While innovation thrives in environments that reward risk and competition, this move also raises important questions about concentrated corporate power in the tech ecosystem. When a handful of organizations wield the infrastructure behind artificial intelligence—which in turn underpins campaign messaging, voter-targeting systems and public-sector surveillance—the risk to free speech, transparency and democratic accountability grows. From a conservative vantage, the ideal path is not to stifle innovation, but to ensure that such powerful platforms remain open, subject to private-sector competition and safeguarded by clear rules that preserve individual liberty and civic trust. ~Political Media Inc

OpenAI Restructures, Microsoft Takes For-Profit Stake

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