OpenAI completes conversion to for-profit corporation

Oct 28, 2025

OpenAI completed its conversion from a nonprofit to a for-profit public benefit corporation on Tuesday after receiving approval from Delaware Attorney General Kathy Jennings, concluding nearly a year of regulatory review. The restructuring values OpenAI at $500 billion and grants Microsoft a roughly 27% stake worth over $100 billion, while the nonprofit OpenAI Foundation retains control and commits to distributing $25 billion toward health and AI safety causes. The conversion changes how AGI achievement will be determined, shifting from OpenAI's board to an independent expert panel, which affects Microsoft's access to confidential research through 2030. Co-founder Elon Musk contested the transformation through lawsuits and a nearly $100 billion takeover bid, while nonprofit advocates like Public Citizen's Robert Weissman criticized the arrangement as failing to guarantee genuine nonprofit independence.

Completion of OpenAI's conversion to for-profit structure

▪OpenAI was valued at $500 billion under the terms of the restructuring deal.
▪Kathy Jennings, the Delaware attorney general, approved OpenAI's plan to change to a public benefit corporation.

Revised Microsoft partnership and ownership stake

▪Microsoft's stake in OpenAI is worth more than $100 billion based on OpenAI's $500 billion valuation.
▪Microsoft received a roughly 27% stake in OpenAI's new for-profit corporation.
▪Microsoft's rights to OpenAI's confidential research methods will remain until either the expert panel verifies AGI or through 2030, whichever is first.

Role and future of the non-profit entity

▪The OpenAI Foundation will grant out $25 billion toward health, curing diseases, and protecting against cybersecurity risks of AI.

Criticism and concerns about the restructuring

▪Elon Musk made a surprise bid of nearly $100 billion to take control of OpenAI.
▪Robert Weissman said OpenAI's restructuring arrangement does not guarantee the non-profit independence, likening it to a corporate foundation that will serve the interests of the for-profit.
▪Robert Weissman said there is no evidence of OpenAI's non-profit ever imposing its values on the for-profit.
▪Robert Weissman is co-president of the non-profit Public Citizen.
▪Elon Musk challenged OpenAI's conversion with a lawsuit, which Elon Musk dropped once and refiled.