OpenAI's Transition to For-Profit Involves Microsoft

OpenAI is in early discussions with California authorities to transition from a non-profit to a for-profit model, marking a significant shift in its governance structure since its founding in 2015. This move aims to attract more investors and balance profitability with OpenAI's social goals, while maintaining a minor non-profit stake in the new structure. Microsoft, a major investor in OpenAI, is involved in discussions to determine the division of assets and equity as OpenAI's valuation reaches $157 billion. The transition requires approval from the California attorney general's office, and the process might involve evaluating the company's valuable intellectual properties, such as ChatGPT. OpenAI has faced internal tensions between its non-profit mission and commercial goals, highlighted by CEO Sam Altman's brief ousting in 2023. The restructuring efforts include transforming OpenAI into a public benefit corporation to better align its mission and financial objectives.