OpenAI that was founded by Sam Altman, Elon Musk and others as a nonprofit has completed its for profit and early investors, staff and Microsoft are expected to benefit from the new company. CWEB analysts have called the artificial intelligence startup the fastest growing startup in the US and now it has a for profit arm called OpenAI Group PBC while the non profit is called OpenAI foundation.

OpenAI has been in negotiations with the offices of the Attorneys General in both California and Delaware for over a year and they seemed to have finally been successful. Elon Musk, who is a cofounder when the A.I. startup was a nonprofit, has sued the company as well as CEO Sam Altman in an attempt to prevent the conversion. 

OpenAI has also made a deal with Microsoft. A blog post by the hardware and software giant says, “Microsoft’s IP rights for both models and products are extended through 2032 and now include models post-AGI, with appropriate safety guardrails.” 

Bret Taylor, Chair of the OpenAI Board of Directors posted on its site that the company has been “built to benefit everyone.” 

The post also said that the non-profit that is now called the OpenAI Foundation, “holds equity in the for-profit” and this equity has an approximate value of $130 billion according to the post.

The post also mentions the mission of OpenAI — “ensuring that AGI benefits all of humanity—will be advanced through both the businesses and the Foundation.”

The post also noted that the equity of the non-profit will increase as the success of OpenAI increases and these revenues will be used for philanthropic activities. CWEB analysts concur with this notion. 

The Open AI Foundation has earmarked two areas for its initial $25 billion commitment. They are health and curing disease and technical solutions to AI resilience.