OpenAI completes restructure, solidifying Microsoft as a major shareholder (www.cnbc.com)

OpenAI announced the completion of a corporate recapitalization: its nonprofit has been renamed the OpenAI Foundation and now holds an equity stake valued at about $130 billion in its for-profit arm, which has been converted into a public benefit corporation called OpenAI Group PBC. As part of that recapitalization Microsoft said it now holds an investment in the PBC valued at roughly $135 billion, equivalent to about 27% of the company on an as‑converted diluted basis (i.e., after converting preferred shares and accounting for option/convertible dilution). Microsoft has invested more than $13 billion into OpenAI since 2019. OpenAI says the nonprofit’s equity will be monetized over time to fund philanthropic work tied to its mission. For the AI/ML community this is significant both economically and strategically: the deal cements Microsoft as a major shareholder and deepens its commercial and infrastructural ties to OpenAI—affecting cloud compute, product integration and go‑to‑market dynamics. Making the for‑profit arm a public benefit corporation signals a formal attempt to balance commercial scaling with stated public‑interest goals, but the scale of private investment and concentrated ownership raises questions about governance, incentives and regulatory scrutiny. Technically, the recapitalization shifts long‑term funding pathways (equity value backing philanthropic programs) and could accelerate product and model deployment through Microsoft’s platforms, while complicating debates about control, access, and AI safety governance.