OpenAI completed its for-profit restructuring and new deal with Microsoft (www.theverge.com)

OpenAI has completed its contested for-profit restructuring, converting its commercial arm into a public benefit corporation called OpenAI Group PBC while renaming the nonprofit OpenAI Foundation, which now holds equity in the for‑profit (initially valued at roughly $130B) and will start with a $25B focus on healthcare, disease work and “AI resilience.” The settlement with California and Delaware attorneys general (and the end of litigation from co‑founder Elon Musk) preserves nonprofit oversight and a path for the foundation to gain additional ownership as the for‑profit grows—addressing long‑running governance concerns about who controls core models and future AGI development. The accompanying Microsoft deal clarifies previously vague AGI terms and reshapes technical and commercial rights: Microsoft’s stake is now ~27% (down from 32.5% as‑converted) and its IP rights for models/products are extended through 2032 and explicitly include post‑AGI models with safety guardrails; by contrast, Microsoft’s access to OpenAI research IP ends by 2030 or when an independent expert panel verifies AGI. The pact also excludes OpenAI’s consumer hardware from Microsoft’s rights, loosens exclusivity (OpenAI can work with third parties and release some open‑weight models), removes Microsoft’s right of first refusal for compute, and binds OpenAI to purchase an incremental $250B of Azure. Together these changes both constrain and accelerate the AGI race—introducing verifier‑based checks and compute thresholds while enabling broader commercial pathways and third‑party competition.