OpenAI completes its for-profit recapitalization (techcrunch.com)

OpenAI announced it has completed a long-planned recapitalization, carving the lab into a non-profit OpenAI Foundation that legally controls a public benefit for-profit called OpenAI Group. The Foundation will own 26% of the for-profit (with warrants for more if the company grows), appoint its board, and Microsoft holds roughly 27% (valued at about $135 billion), while investors and employees keep the remaining 47%. The restructure removes the prior non‑profit equity limits and lets OpenAI raise large capital, make acquisitions, and scale more aggressively — moves that enabled SoftBank’s conditional $30 billion commitment and cleared other big financing hurdles. Technically and strategically, the deal extends Microsoft’s IP rights to OpenAI models through 2032 and includes a rare safety/oversight clause: if OpenAI claims it has achieved AGI, an independent expert panel must verify that claim. That combination of extended IP access and formal verification requirements is significant for cloud providers, model licensing, and industry safety norms. The recapitalization settles legal fights (including opposition from Elon Musk and inquiries by state AGs) while concentrating influence among major backers, raising both the potential for rapid AI progress and renewed debate about alignment, governance, and market power. CEO Sam Altman and chief scientist Jakub Pachocki will host a public livestream to take questions.