OpenAI Recapitalizes; AGI Oversight, Microsoft 27%

OpenAI completed a year-long recapitalization that converted its for-profit arm into OpenAI Group PBC, controlled by a renamed nonprofit OpenAI Foundation, which will hold roughly a 26% stake (about $130 billion). Microsoft’s position was restructured into roughly a 27% stake (valued near $135 billion) and includes extended exclusive IP and Azure API rights through 2032, while Microsoft lost its prior cloud right of first refusal and the deal includes an incremental Azure purchase commitment of about $250 billion. Delaware and California regulators raised concerns during negotiations but ultimately did not object after changes that keep a safety-oversight committee within the Foundation and set aside equity — including a $25 billion program — for medical research and AI safety. The agreement creates governance checks around any AGI declaration — an independent expert panel must verify AGI — and allows Microsoft to pursue AGI independently subject to compute-threshold limits if it uses OpenAI IP before an AGI declaration. OpenAI says the restructure unlocks traditional equity-raising, including a likely path to an IPO to finance larger models and data centers. Leadership says the shift will move the organization toward a platform model and is targeting an "intern-level" research assistant by next fall.