OpenAI has completed its transition into a for-profit company. The move aims to attract billions in investment and could set the stage for a future stock market debut.
Microsoft strengthens its role in OpenAI
As part of the restructuring, OpenAI and Microsoft have renewed their partnership. Microsoft now holds a 27% stake in the ChatGPT developer. This marks a new stage in a collaboration that began in 2019, when OpenAI operated as a non-profit AI research organization.
The updated agreement allows Microsoft to pursue artificial general intelligence (AGI) independently or with other partners. AGI is often defined as intelligence surpassing human capabilities. OpenAI said it will establish an expert panel to verify any claim that it has achieved AGI.
When asked for details about the panel, the company declined to provide names.
Altman stays in charge without equity
Microsoft will continue to advise OpenAI’s board during the company’s for-profit transition. The firm confirmed that CEO Sam Altman will not hold any equity stake, a detail first reported by Bloomberg.
At the start of the partnership, Microsoft gained access to much of OpenAI’s technology in exchange for cloud computing resources. Since then, OpenAI has expanded partnerships with other major tech firms, fueling speculation about a potential AI bubble.
The revised agreement 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 reached that milestone in July, joining Nvidia as one of only two public firms to do so.
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 users worldwide.
At its DevDay event in San Francisco this month, Sam Altman revealed that ChatGPT now has 800 million weekly active users. Valued at $500 billion, OpenAI continues to release new products to increase engagement and expand its influence in the AI market.
Recent innovations include ChatGPT Atlas, an AI-powered browser competing with Google Chrome, and Sora, a video generation tool capable of producing realistic footage from text prompts.
Controversy shadows OpenAI’s rise
Despite its success, OpenAI faces criticism. 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, sparking public debate.
Critics argue OpenAI underestimates the mental health risks of its technology. They claim the company prioritizes profit over responsibility and has implemented too few safeguards.
Still, OpenAI’s conversion to a for-profit model marks a pivotal moment in artificial intelligence. The company now stands as a central force shaping innovation, ethics, and competition in the global tech industry.
