OpenAI to Reorganize as For-Profit, Microsoft Deal Facilitates Transition
OpenAI is set to undergo a significant transformation, reorganizing as a for-profit company. The move is a culmination of long-planned efforts and is facilitated by a key agreement with Microsoft.
The deal with Microsoft is a central prerequisite for OpenAI's restructuring. It allows the company to move forward with its plans to become a Public Benefit Corporation. The new contract is set to renegotiate financial conditions, technology sharing, and revenue sharing that have been in place since 2019. As part of the restructuring, the non-profit parent organization of OpenAI is set to receive a stake in the company, valued at over 100 billion USD.
On September 11, 2025, OpenAI and Microsoft signed a non-binding agreement regarding new business terms. This will allow OpenAI to restructure into a profit-oriented company. The long-disputed AGI clause remains part of the agreement, with modifications yet to be published.
Bret Taylor, chairman of the OpenAI board, described the organization as one of the 'best-equipped philanthropic organizations in the world'. OpenAI has also announced a grant program worth 50 million USD to support non-profit and local organizations in AI education and economic participation.
OpenAI's restructuring, facilitated by its agreement with Microsoft, paves the way for the company to operate as a for-profit entity while maintaining its commitment to beneficial AI. The non-profit parent organization stands to gain a significant stake in the company, and OpenAI's philanthropic efforts continue with a substantial grant program.
