OpenAI has completed its transformation into a for-profit company. The move is expected to attract billions in investment and could pave the way for a future stock market debut.
Microsoft reshapes its partnership with OpenAI
As part of the restructuring, Microsoft and OpenAI have redefined their partnership. Microsoft now holds a 27% stake in the ChatGPT developer. This marks a major evolution in a collaboration that began in 2019, when OpenAI still operated as a non-profit research lab.
Under the new deal, Microsoft can now pursue artificial general intelligence (AGI) independently or with other partners. AGI is often defined as intelligence that surpasses human capabilities. OpenAI also announced plans to form an expert panel to verify any claim that it has achieved AGI.
When asked for details, OpenAI declined to identify who will serve on the panel.
Altman leads without equity as Microsoft gains more control
Microsoft will continue to advise OpenAI’s board as the company completes its transition. It confirmed that CEO Sam Altman will not receive an equity stake, a detail first reported by Bloomberg.
In their original partnership, Microsoft gained rights to much of OpenAI’s technology in exchange for vital cloud computing resources. Since then, OpenAI has entered agreements with several major tech companies, fueling speculation that the AI market may be overheating.
The renewed deal gives Microsoft extended rights to OpenAI’s AI models until 2032 but excludes consumer hardware.
After the announcement, Microsoft’s market capitalization topped $4 trillion for the second time. The company first reached that mark in July, joining Nvidia as one of only two public firms to achieve it.
OpenAI’s rapid expansion and influence
OpenAI became a global phenomenon in 2022 with the launch of ChatGPT, which brought artificial intelligence into everyday life.
At the company’s DevDay event in San Francisco earlier this month, Sam Altman said ChatGPT now has 800 million weekly active users. Valued at $500 billion, OpenAI continues to expand its product line and strengthen its position in the AI race.
Its new browser, ChatGPT Atlas, takes aim at Google Chrome. The company also introduced Sora, a video generation tool capable of producing lifelike clips from text prompts.
Growth sparks criticism and ethical concerns
Despite its achievements, OpenAI faces growing controversy. 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 will soon be able to access erotica through ChatGPT, a move that triggered sharp public debate.
Critics accuse OpenAI of underestimating the mental health risks tied to its technology. They argue the company focuses too heavily on profit and lacks strong safety controls.
Still, OpenAI’s shift to a for-profit model marks a decisive moment for the technology world. It cements the company’s role as one of the most influential forces shaping the future of artificial intelligence.
