Microsoft Remains Key Holdout in OpenAI Restructuring

OpenAI, creator of ChatGPT, has decided to retain its nonprofit structure while converting its for-profit arm into a public benefit corporation, a move made after consultations with civic leaders and Attorneys General from California and Delaware. Microsoft, OpenAI’s largest investor with a $13.75 billion stake, remains a key negotiator and has yet to fully endorse the restructuring, with its approval seen as pivotal for the plan's progress. The nonprofit entity will remain the controlling shareholder of the new public benefit corporation, reinforcing OpenAI’s mission to ensure artificial general intelligence benefits everyone. This organizational shift comes as OpenAI faces legal and regulatory scrutiny, including a lawsuit from co-founder Elon Musk and close monitoring by state officials. Microsoft continues to collaborate closely with OpenAI on finalizing these changes, and its stock maintains a strong 'Outperform' or 'Strong Buy' consensus among analysts. The restructuring aims to balance profit-making with OpenAI’s founding mission of serving the public good.