Microsoft Secures 27% Stake as OpenAI Turns Public Benefit

OpenAI has officially restructured into a public benefit corporation called OpenAI Group PBC. Thanks to it, there is now a major shift in its governance and its long-running partnership with Microsoft. The restructuring, approved by Delaware Attorney General Kathy Jennings, ends months of regulatory scrutiny over how the ChatGPT maker balances profit and public interest.

Under the new setup, OpenAI’s nonprofit arm, which is now called the OpenAI Foundation, will retain control of the for-profit entity. However, Microsoft now holds a roughly 27% stake under a revised agreement that changes how the two companies collaborate.

The attorney general’s approval clears the way for OpenAI to pursue more aggressive commercial expansion while maintaining its original mission to develop AI “for the benefit of humanity.” Jennings said her office’s review ensured that safety and ethical safeguards remained in place.

In a blog post, OpenAI’s board chair Bret Taylor said the simplified structure gives the foundation “a direct path to major resources before AGI arrives.” The nonprofit will also direct $25 billion toward global health, cybersecurity, and AI safety grants over time.

The restructuring also introduces a new safeguard, though. OpenAI has announced that it has reached artificial general intelligence (AGI) and will now require verification from an independent panel, not just internal approval. Microsoft’s rights to OpenAI’s confidential research and commercial use of its technology will continue until 2030 or until AGI is verified.

The updated partnership reflects both companies’ evolving ambitions. Microsoft first invested $1 billion in 2019, becoming OpenAI’s exclusive cloud provider. Since then, OpenAI has expanded its own infrastructure deals with NVIDIA. Wheras, it’s also partnering with Oracle and SoftBank to build global data centers. It’ll be interesting to see how the partnership pans out in the coming years.

Rishaj Upadhyay

News Editor

Rishaj is a tech writer who has been writing professionally for over four years, with a passion for Android, Windows, and all things tech. He initially joined Windows Report as a tech journalist and is now taking over as a news editor. When he’s not breaking the keyboard, you can find him cooking, or listening to music/podcasts.