Summary
OpenAI is restructuring into a public-benefit corporation, and Microsoft is taking a 27% ownership stake, valuing OpenAI at $500 billion. This change gives OpenAI more freedom in its business and eases restrictions that had limited its ability to get funding since 2019. Microsoft has invested heavily in OpenAI and the new deal links the companies until at least 2032.
Key Facts
- OpenAI is becoming a public-benefit corporation, valued at $500 billion.
- Microsoft will have a 27% stake in OpenAI, worth about $135 billion.
- The restructuring gives OpenAI more freedom, easing past funding restrictions.
- Microsoft has invested $13.8 billion in OpenAI, seeing a significant return.
- The deal extends until 2032, allowing Microsoft some rights over OpenAI's work.
- OpenAI's ChatGPT service is very popular, having over 700 million users weekly.
- OpenAI's nonprofit arm, OpenAI Foundation, will control the new structure.
- OpenAI agreed to buy $250 billion in Microsoft Azure cloud computing services.
