OpenAI has completed its transition into a for-profit company. The move is designed to attract billions in new investment and could prepare the firm for a future stock market debut.
Microsoft redefines its partnership with the AI trailblazer
As part of the change, OpenAI and Microsoft have renewed their strategic partnership. Microsoft now owns a 27% stake in the ChatGPT developer. The new structure marks a turning point in a collaboration that began in 2019, when OpenAI still operated as a non-profit research organization.
Under the updated deal, Microsoft can now develop artificial general intelligence (AGI) independently or with other partners. AGI is often described as intelligence that surpasses human ability. OpenAI announced it will create an expert panel to verify any future claim that it has reached AGI.
When asked for details about the panel, the company declined to share names.
Altman steps aside from ownership as Microsoft gains influence
Microsoft will continue to support OpenAI’s board during the company’s transition to a profit-driven model. It confirmed that CEO Sam Altman will not hold any equity stake, a detail first reported by Bloomberg.
When the partnership started, Microsoft secured access to much of OpenAI’s work, providing crucial cloud computing resources in return. Since then, OpenAI has expanded partnerships with other tech giants, sparking debate over whether the AI sector is becoming overheated.
The renewed deal gives Microsoft 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. It first achieved that milestone in July, joining Nvidia as one of the only two public companies to reach it.
OpenAI’s rise from research lab to global tech leader
OpenAI brought artificial intelligence into everyday life in 2022 with the release of ChatGPT. The chatbot quickly became one of the most widely used AI tools in the world.
At OpenAI’s DevDay event in San Francisco earlier this month, Sam Altman announced that ChatGPT now has 800 million weekly active users. Valued at $500 billion, the company continues to launch new products aimed at strengthening its position in the AI market.
Among them are ChatGPT Atlas, an AI-powered browser competing with Google Chrome, and Sora, a video generator capable of creating realistic clips from text descriptions.
Success meets scrutiny as controversies grow
Despite its achievements, OpenAI remains under intense 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 will soon be able to access erotica through ChatGPT, a move that sparked public debate.
Critics argue that OpenAI underplays the mental health risks linked to its technology. They accuse the company of prioritizing profit over responsibility and failing to establish sufficient safeguards.
Even with these controversies, OpenAI’s conversion to a for-profit model marks a defining moment for artificial intelligence — one that will shape the direction of the global tech industry for years to come.
