OpenAI has completed its transformation 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 stake in OpenAI
As part of the transition, OpenAI and Microsoft have redefined their partnership. Microsoft now owns a 27% stake in the ChatGPT developer. This marks a new chapter in a collaboration that began in 2019, when OpenAI still operated as a non-profit AI research lab.
The revised deal allows Microsoft to pursue artificial general intelligence (AGI) independently or with other partners. AGI is often defined as intelligence that surpasses human capabilities. OpenAI said it will form an expert panel to verify any claim that the company has achieved AGI.
When asked for details about the panel, the company declined to share who would serve.
Altman stays in charge without equity
Microsoft will continue to advise OpenAI’s board as the company finalizes its shift to a profit-focused structure. The firm 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 technology in exchange for critical cloud computing support. Since then, OpenAI has forged new partnerships with other major tech firms, fueling speculation about a possible AI bubble.
The updated agreement extends Microsoft’s rights to OpenAI’s AI models until 2032 but excludes consumer hardware.
After the announcement, Microsoft’s market capitalization surpassed $4 trillion for the second time. The company first reached this milestone in July, joining Nvidia as one of only two public firms to achieve it.
OpenAI’s rapid growth and global impact
OpenAI became a global phenomenon in 2022 with the launch of ChatGPT, bringing AI into everyday life for millions of users.
At the company’s 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 launch products that strengthen its influence in the AI market.
Among its recent innovations are ChatGPT Atlas, an AI-powered browser challenging Google Chrome, and Sora, a video generation tool producing lifelike clips from text prompts.
Controversy follows 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 adults would soon be able to access erotica on ChatGPT, a move that triggered debate.
Critics say OpenAI underestimates the mental health risks linked to its technology. They argue the company prioritizes profit over safety and has introduced too few safeguards.
Still, OpenAI’s shift to a for-profit model represents a major milestone in artificial intelligence. The move positions the company as a key driver of innovation, influence, and ethical debate in the global tech industry.
