OpenAI Transforms into Public Benefit Corporation, Valued at $500B
OpenAI has undergone a significant transformation, with a recent valuation of 500 billion USD in a secondary sale. This move sees the non-profit organization retaining at least 20 percent of the voting rights in the newly structured for-profit company.
The shift comes after Microsoft provisionally agreed to renegotiate its partnership with OpenAI, paving the way for the organization to become a Public Benefit Corporation. The new agreement aims to re-evaluate financial conditions, technology sharing, and revenue sharing that have been in place since 2019, when Microsoft initially invested over 13 billion USD, securing around 49 percent of future profits.
Bret Taylor, chairman of the OpenAI board, praised the organization as one of the 'best-equipped philanthropic organizations in the world'. This sentiment is reflected in OpenAI's recent announcement of a 50 million USD funding program to support non-profit and local organizations in AI education and economic participation.
The non-profit parent organization of OpenAI is expected to receive a stake in the company, valued at over 100 billion USD, ensuring its continued influence in the restructured company. The long-controversial AGI clause remains part of the agreement, with modifications yet to be fully disclosed. This transformation, facilitated by Microsoft's provisional agreement, positions OpenAI to continue its AI research and development while maintaining a strong commitment to philanthropy.
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