OpenAI restructures as a public-benefit corporation valued at $500 billion
Microsoft’s massive $13.8 billion investment in OpenAI is finally yielding major returns as the artificial intelligence firm restructures itself into a public-benefit corporation (PBC) — a move that both expands its fundraising potential and reshapes control within the world’s most influential AI partnership.
The new arrangement, finalized this week, officially values OpenAI Group PBC at a staggering $500 billion, giving it far greater operational flexibility while maintaining its stated mission of ensuring AI benefits humanity.
A shift in structure and control
Under the new corporate framework, Microsoft retains a 27% ownership stake in OpenAI Group PBC — a share now worth approximately $135 billion.
The reorganization dissolves OpenAI’s previous “capped-profit” model, which had limited investor returns and complicated financing rounds since its creation in 2019.
Control of the company will remain with the OpenAI Foundation, the nonprofit parent that governs the company’s ethical direction and mission alignment.
The deal simplifies OpenAI’s complex internal structure, bringing together its nonprofit oversight, for-profit operations, and strategic investors under one unified corporate umbrella.
Why the restructuring matters
The transformation allows OpenAI to raise unlimited capital from institutional investors and public markets — something it could not do under its previous model.
However, the move also introduces a new layer of complexity for Microsoft, which must balance its commercial interests with OpenAI’s nonprofit-driven mission.
While the Redmond tech giant gains deeper integration of ChatGPT, Copilot, and Azure AI technologies, it does not have direct control over OpenAI’s governance. The foundation retains veto power over strategic decisions and leadership changes — a safeguard meant to prevent undue corporate influence over the development of powerful AI systems.
A $500 billion AI powerhouse in the making
With its new structure, OpenAI joins the ranks of the most valuable private companies in the world, second only to SpaceX.
Analysts say the reorganization could pave the way for a future IPO or broader public offering, especially as AI demand accelerates across industries.
For Microsoft, the deal represents both a financial windfall and a strategic victory. Its early investment secured deep technological integration across Windows, Office, and Azure — solidifying its position as the global leader in applied AI.
But there’s a catch: OpenAI’s foundation board can still override corporate decisions, meaning Microsoft’s influence has limits.
This balance between profit and principle could define the next chapter of AI’s evolution — and determine whether OpenAI remains true to its founding mission while becoming one of the most powerful companies on Earth.
