OpenAI cements new corporate structure for long-term AGI mission

OpenAI has finalized its corporate restructuring, creating a nonprofit OpenAI Foundation that controls the for-profit OpenAI Group PBC.

OpenAI has completed its much-awaited restructuring, simplifying the corporate structure so that the nonprofit remains in control of the for-profit. The for-profit is now a public benefit corporation, called OpenAI Group PBC.

The nonprofit, now called the OpenAI Foundation, holds equity in the for-profit, currently valued at about $130 billion (about 26% stake). Additionally, if OpenAI Group’s share price increases more than tenfold after 15 years, the OpenAI Foundation will receive additional equity. OpenAI didn't mention how much additional equity will be awarded, but it just mentioned it as "significant."

OpenAI Foundation and OpenAI Group have the same mission of ensuring that AGI benefits all of humanity. While the OpenAI Group will be advancing towards the mission through R&D, the OpenAI Foundation will be doing the same through philanthropic work.

The OpenAI Foundation will initially focus on a $25B commitment across the following areas:

The OpenAI Foundation will fund work to accelerate health breakthroughs with activities like the creation of open-source and responsibly built frontier health datasets and funding for scientists.
The OpenAI Foundation will invest to support practical technical solutions for AI resilience to maximize AI’s benefits and minimize its risks.

To avoid fragmented governance between these two different organizations, all current OpenAI Foundation directors will be on the OpenAI Group’s board as well. The current board members include the following:

Bret Taylor (Chair)
Adam D’Angelo
Dr. Sue Desmond-Hellmann
Dr. Zico Kolter
Retired U.S. Army General Paul M. Nakasone
Adebayo Ogunlesi
Nicole Seligman
Larry Summers
Sam Altman

The OpenAI Foundation will be responsible for appointing all members of the board of directors of OpenAI Group and can replace directors at any time.

With this restructuring, Microsoft will own about 27% of OpenAI Group (valued at about $135 billion), and the remaining 47% will be owned by current and former OpenAI employees and investors.