OpenAI has completed its transformation into a for-profit company. The move is designed to attract billions in investment and could open the door to a future stock market listing.
Microsoft reshapes its powerful partnership with OpenAI
As part of the restructuring, OpenAI and Microsoft have redefined their alliance. Microsoft now owns a 27% stake in the ChatGPT creator. The agreement marks a turning point in a partnership that began in 2019, when OpenAI still operated as a non-profit AI research organization.
Under the new terms, Microsoft can now pursue artificial general intelligence (AGI) independently or with other collaborators. AGI is often defined as a form of intelligence that exceeds human capability. OpenAI said it will form a specialist panel to verify any claim that it has achieved AGI.
When asked for details, the company declined to share who would sit on the panel.
Altman without shares, Microsoft with more power
Microsoft will continue to advise OpenAI’s board throughout the company’s conversion. It confirmed that CEO Sam Altman will not hold any equity stake. Bloomberg first reported this detail.
When the partnership began, Microsoft secured rights to many of OpenAI’s developments, providing vital cloud computing power. Since then, OpenAI has made deals with several major tech players, fueling speculation that the booming AI market may be turning into a bubble.
The revised deal gives Microsoft rights to OpenAI’s AI models until 2032 but excludes any consumer hardware projects.
After the announcement, Microsoft’s market value surpassed $4 trillion for the second time. The company first hit that milestone in July, joining chipmaker Nvidia as one of the few firms to achieve it.
OpenAI’s rise from research lab to global tech leader
OpenAI brought artificial intelligence to the masses in 2022 with the launch of ChatGPT.
At its DevDay event in San Francisco this month, Sam Altman revealed that ChatGPT had reached 800 million weekly active users. Valued at $500 billion, OpenAI continues to release products that deepen engagement with its technology.
Its new browser, ChatGPT Atlas, competes directly with Google Chrome. The company also launched Sora, a video generation tool that turns written prompts into realistic moving images.
Success meets scrutiny as OpenAI grows
Despite its rapid rise, OpenAI faces increasing public criticism. Last week, the company blocked Sora 2 from generating deepfake videos of Dr. Martin Luther King Jr. after his family raised objections.
It also announced plans to allow verified adults to access erotica on ChatGPT, a decision that drew sharp debate.
Critics argue that OpenAI underplays the mental health effects of its technology. They accuse the firm of chasing profits with too few ethical safeguards in place.
Still, OpenAI’s move to a for-profit structure marks a historic turning point for artificial intelligence — one that could define the next chapter of the tech industry’s future.
