Tue, 28 Oct 2025

Tue, 28 Oct 2025 OpenAI completes shift to becoming for-profit

The deal will see long term investor Microsoft retain a 27% stake in the ChatGPT-maker.

* OpenAI has completed its conversion to a for-profit entity, which could allow it to raise billions in investment and potentially go public.
* Microsoft now holds a 27% stake in OpenAI through changes to their partnership, which was first established in 2019 when OpenAI was still a non-profit AI research organization.
* The revised deal allows Microsoft to pursue artificial general intelligence on its own or with other parties, and requires OpenAI to convene an expert panel to verify any claims of achieving AGI.
* Sam Altman will not hold an equity stake in the company as part of the conversion process.
* The deal extends Microsoft's rights to OpenAI's AI models until 2032, but excludes consumer hardware.
* OpenAI is now valued at $500 billion and has reached 800 million weekly active users with its products like ChatGPT and Sora.
* The company has faced controversy over the use of its AI tools, including concerns about mental health implications and the potential for deepfakes.
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