OpenAI has finalized its move to become a for-profit company. The transformation aims to attract billions in fresh investment and could pave the way for a future stock market debut.
Microsoft redefines its powerful partnership with OpenAI
As part of the restructuring, OpenAI and Microsoft have renewed their alliance. Microsoft now holds a 27% stake in the ChatGPT developer. The new deal marks a turning point in a partnership that began in 2019, when OpenAI still operated as a non-profit research organization.
Under the updated terms, Microsoft can now develop artificial general intelligence (AGI) independently or with other partners. AGI refers to a level of artificial intelligence that surpasses human capabilities. OpenAI said it will create an expert panel to verify any claim that it has achieved AGI.
When asked who would serve on the panel, the company declined to comment.
Microsoft gains influence while Altman stays without shares
Microsoft will continue to support OpenAI’s board during its shift to a profit-focused structure. The company confirmed that CEO Sam Altman will not hold an equity stake, as first reported by Bloomberg.
In the early days of their partnership, Microsoft secured access to much of OpenAI’s research while providing essential cloud computing resources. Since then, OpenAI has formed new partnerships with other major tech players, fueling talk of an emerging AI investment bubble.
The revised agreement gives Microsoft extended access to OpenAI’s AI models until 2032 but excludes consumer hardware products.
Following the announcement, Microsoft’s market value climbed above $4 trillion for the second time. It first reached this milestone in July, joining Nvidia as one of only two public firms to do so.
OpenAI’s meteoric growth and global reach
OpenAI became a global name in 2022 when it launched ChatGPT, bringing artificial intelligence to millions of everyday users.
At the company’s DevDay event in San Francisco this month, Sam Altman announced that ChatGPT had reached 800 million weekly active users. Valued at $500 billion, OpenAI continues to expand its portfolio with new products.
Its AI-driven browser, ChatGPT Atlas, takes aim at Google Chrome, while its video generation tool, Sora, can produce lifelike footage from written prompts.
Innovation under fire as controversies grow
Despite its success, OpenAI faces mounting criticism. Last week, the company blocked Sora 2 from generating deepfake videos of Dr. Martin Luther King Jr. after objections from his family.
It also announced that ChatGPT would soon allow verified adults to access erotica, a move that sparked public debate.
Critics say OpenAI downplays the mental health risks linked to its technology. They argue the company prioritizes profit over responsibility and operates with too few safety measures.
Even with the controversies, OpenAI’s transition marks a defining moment in the evolution of artificial intelligence — one that may shape the global tech landscape for years to come.
