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    Home»Stock Market»OpenAI Completes Split into Commercial Corporation and Nonprofit Foundation
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    OpenAI Completes Split into Commercial Corporation and Nonprofit Foundation

    OpenAI splits into a commercial corporation and nonprofit foundation, with Microsoft securing 27% stake and extended AI licenses
    31 October 2025No Comments2 Mins Read
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    OpenAI corporate and nonprofit split visualization
    Illustration symbolizing OpenAI’s division into a commercial corporation and nonprofit foundation.
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    OpenAI has finalized its restructuring, dividing the organization into a commercial entity, OpenAI Group, and a nonprofit foundation, OpenAI Foundation. The move, officially announced on October 28, 2025, concludes months of legal and regulatory processes involving investors, state authorities, and high-profile stakeholders such as Elon Musk.

    New Corporate Structure and Ownership

    Under the new model, the OpenAI Foundation retains 26% ownership of OpenAI Group and maintains control over the board of directors, ensuring alignment with public interest while enabling the company to pursue commercial growth. Microsoft received approximately 27% of the shares, valued at around $135 billion, and retains extended licensing rights to OpenAI’s AI models until 2032. Remaining shares were distributed among investors and company employees.

    CEO Sam Altman and Chair Bret Taylor emphasized that the restructuring creates a balance between societal responsibilities and innovation, allowing OpenAI to raise capital and acquire businesses without previous legal restrictions.

    Strategic Implications and Regulatory Oversight

    The reorganization enables OpenAI to accelerate its AI development initiatives, including work on Artificial General Intelligence (AGI), while maintaining oversight through independent experts. Regulatory approvals in California and Delaware were contingent upon conditions addressing safety, ethical use, and youth protection, reflecting heightened scrutiny of AI governance.

    This restructuring follows major investment commitments, including a $30 billion pledge from SoftBank, which was contingent on the completion of the recapitalization process. The transition also withstood attempts by Elon Musk to block or acquire the company, highlighting the high-stakes nature of AI commercialization.

    Outlook and Community Engagement

    Following the announcement, OpenAI scheduled a live Q&A session with Sam Altman and Chief Scientist Jakub Pachocki, providing the public an opportunity to engage directly with the team. The session is set for October 29, 2025, at 20:30 Kyiv time.

    The company’s evolution from a nonprofit to a dual-structure organization marks a significant milestone in the AI industry, illustrating how leading tech firms can combine innovation, investment, and public accountability.

    AGI AI Artificial Intelligence Corporate Restructuring investment Microsoft Nonprofit OpenAI Tech Innovation
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