OpenAI completes corporate reorganization with support from Microsoft (www.engadget.com)

OpenAI has completed its long-planned corporate reorganization into a public benefit corporation, the company announced in a board statement by Bret Taylor. The nonprofit arm — now called the OpenAI Foundation — will continue to control the for-profit entity and hold an equity stake that OpenAI values at roughly $130 billion. The Foundation is also slated to gain additional control over the for-profit company once an unspecified “valuation milestone” is reached. The move was finalized with support from Microsoft, reflecting the ongoing strategic partnership between the two organizations. For the AI community, this change is significant because it formalizes a governance structure that aims to balance broad social objectives with commercial development. Making the nonprofit the ultimate controller (and a large equity holder) could strengthen commitments to safety, public-benefit goals, and long-term research priorities — but the undefined valuation trigger and retained for-profit autonomy leave important details open about when and how oversight will increase. Practically, the reorg may influence investment, product roadmaps, compute and cloud partnerships (notably Microsoft), and regulatory scrutiny as stakeholders evaluate how governance affects model development, deployment, and accountability.