From Idealism to Capital: OpenAI’s Big Shift

OpenAI, founded in 2015 as a nonprofit organization, has completed a corporate restructuring to operate under a limited for-profit legal structure: it is now called OpenAI Group PBC, a Public Benefit Corporation (PBC). This transformation was announced on October 28, 2025.

The new structure includes two main components: on one hand, the nonprofit foundation — now renamed OpenAI Foundation — which keeps control of the commercial entity; and on the other, the for-profit company, OpenAI Group PBC, which can now raise external capital and operate with greater flexibility.

A key detail is Microsoft’s 27% stake in OpenAI Group PBC, valued at around $135 billion. The total valuation of the new structure is estimated at $500 billion.

Reasons and key features of the change

The decision stems from several factors:

• Developing advanced AI requires massive resources in infrastructure and talent.
• The nonprofit model limited investment opportunities.
• As a PBC, OpenAI keeps its public mission but gains more flexibility to compete in the market.

Other notable aspects:

• The OpenAI Foundation retains control over the commercial company.
• The new structure allows for international deals, growth, and expansion.
• Microsoft keeps exclusive rights to key technologies and the use of Azure until at least 2032.

Implications for the AI sector

This move could have major consequences:

• It enables faster expansion and greater competitiveness against other tech giants.
• It raises questions about governance, fairness, and transparency in the use of AI.
• The hybrid model — blending profit and responsibility — will need to prove its real-world viability.

In summary

OpenAI has taken a major step by transforming into a for-profit company under the PBC model. This shift allows it to grow and attract investment without formally abandoning its founding mission. Microsoft’s influence further strengthens its global market position. The real challenge now will be maintaining the balance between profitability and the public good.