OpenAI has completed its shift into a for-profit company. The move aims to attract billions in investment and could pave the way for a future stock market debut.
Microsoft deepens its stake in OpenAI
As part of the restructuring, OpenAI and Microsoft have renewed their partnership. Microsoft now holds a 27% stake in the ChatGPT developer. This marks a new phase in a collaboration that began in 2019, when OpenAI still operated as a non-profit AI research organization.
Under the updated agreement, Microsoft can pursue artificial general intelligence (AGI) independently or with other partners. AGI is often defined as intelligence that surpasses human ability. OpenAI said it will form an expert panel to verify any claim that it has achieved AGI.
When asked about the panel, the company declined to provide details.
Altman remains CEO without equity
Microsoft will continue advising OpenAI’s board during the company’s for-profit transition. The firm confirmed that CEO Sam Altman will not hold any equity stake, a detail first reported by Bloomberg.
When the partnership began, Microsoft gained access to much of OpenAI’s technology in exchange for cloud computing resources. Since then, OpenAI has expanded partnerships with other major tech firms, sparking debate about a potential AI bubble.
The revised agreement gives Microsoft rights to OpenAI’s AI models until 2032 but excludes consumer hardware.
Following the announcement, Microsoft’s market capitalization surpassed $4 trillion for the second time. It first reached that milestone in July, joining Nvidia as one of only two public firms to achieve it.
OpenAI’s rapid growth and influence
OpenAI became a global phenomenon in 2022 with the launch of ChatGPT, bringing artificial intelligence to millions of users worldwide.
At its DevDay event in San Francisco this month, Sam Altman revealed that ChatGPT now has 800 million weekly active users. Valued at $500 billion, OpenAI continues to launch new products to increase engagement and strengthen its influence in the AI market.
Recent innovations include ChatGPT Atlas, an AI-powered browser competing with Google Chrome, and Sora, a video generation tool capable of producing realistic footage from text prompts.
Controversy shadows OpenAI’s rise
Despite its success, OpenAI faces criticism. Last week, the company blocked Sora 2 from generating deepfake videos of Dr. Martin Luther King Jr. after his family intervened.
It also announced that verified adult users would soon be able to access erotica through ChatGPT, sparking public debate.
Critics say OpenAI underestimates the mental health risks of its technology. They claim the company prioritizes profit over responsibility and has implemented too few safeguards.
Still, OpenAI’s shift to a for-profit model marks a defining moment in artificial intelligence. The company now stands as a key force shaping innovation, ethics, and competition in the global tech industry.
