OpenAI has completed its transition into a for-profit company. The move aims to attract billions in new investment and could pave the way for a future stock market debut.
Microsoft strengthens its influence in OpenAI
As part of the change, OpenAI and Microsoft have redefined their partnership. Microsoft now owns 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 now pursue artificial general intelligence (AGI) independently or with other partners. AGI is often described as intelligence surpassing human capability. OpenAI said it will establish an expert panel to verify any claim that the company has achieved AGI.
When asked for details, the company declined to reveal who will serve on the panel.
Altman remains at the helm without equity
Microsoft will continue to support OpenAI’s board during the company’s for-profit transition. It 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 research in exchange for cloud computing support. Since then, OpenAI has formed agreements with other major tech companies, sparking speculation about a potential AI bubble.
The revised deal extends Microsoft’s rights to OpenAI’s AI models through 2032 but excludes consumer hardware.
Following the announcement, Microsoft’s market capitalization surpassed $4 trillion for the second time. The company first reached that milestone in July, joining Nvidia as one of only two public firms to achieve it.
OpenAI’s rapid growth and global influence
OpenAI became a household name in 2022 with the launch of ChatGPT, bringing artificial intelligence to millions of everyday users.
At its DevDay event in San Francisco earlier this month, Sam Altman announced that ChatGPT had reached 800 million weekly active users. Valued at $500 billion, OpenAI continues to launch new products aimed at increasing engagement and expanding its influence in the AI market.
Recent offerings include ChatGPT Atlas, an AI-powered browser that rivals Google Chrome, and Sora, a video generation tool producing realistic footage from text prompts.
Controversy follows OpenAI’s rise
Despite its success, OpenAI remains under scrutiny. Last week, the company blocked Sora 2 from creating deepfake videos of Dr. Martin Luther King Jr. after his family raised objections.
It also announced that verified adult users would soon be able to access erotica through ChatGPT, triggering public debate.
Critics argue OpenAI underestimates the mental health risks of its technology. They claim the company prioritizes profit over safety and has implemented too few safeguards.
Still, OpenAI’s move to a for-profit model marks a historic moment for artificial intelligence. The company now stands as a central force shaping innovation, ethics, and competition in the global technology industry.
