OpenAI has completed its shift to a for-profit company. The move aims to attract billions in investment and could pave the way for a future stock market debut.
Microsoft deepens its influence in OpenAI
As part of the restructuring, OpenAI and Microsoft have redefined their partnership. Microsoft now holds a 27% stake in the ChatGPT developer. This marks a major change in a collaboration that began in 2019, when OpenAI still operated as a non-profit AI research organization.
Under the updated deal, Microsoft can now pursue artificial general intelligence (AGI) independently or with other partners. AGI is often defined as intelligence that surpasses human capability. OpenAI said it will form an expert panel to verify any claim that it has achieved AGI.
When asked about the panel’s members, the company declined to provide details.
Altman remains CEO without equity
Microsoft will continue advising OpenAI’s board as the company completes its shift to a profit-driven model. The firm confirmed that CEO Sam Altman will not hold any equity stake, a detail first reported by Bloomberg.
When their partnership began, Microsoft gained access to much of OpenAI’s research in exchange for cloud computing support. Since then, OpenAI has formed partnerships with other major tech companies, fueling debate about whether the AI market is entering a bubble phase.
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. The company first reached that milestone in July, joining Nvidia as one of only two public firms to achieve it.
OpenAI’s global growth and expanding influence
OpenAI became a household name in 2022 with the launch of ChatGPT, which brought artificial intelligence into everyday life.
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 roll out new products aimed at maintaining engagement and extending its influence in the AI sector.
Among its latest offerings are 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 accompanies OpenAI’s rise
Despite its success, OpenAI faces ongoing 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 would soon be able to access erotica through ChatGPT, sparking public debate.
Critics argue that OpenAI underestimates the mental health risks of its products. They claim the company prioritizes profit over responsibility and has implemented too few safeguards.
Still, OpenAI’s transition to a for-profit model marks a defining moment for artificial intelligence. The company now stands as a key driver of innovation, ethics, and competition in the global technology landscape.
