OpenAI completes its recapitalization, “simplifying” its structure; OpenAI Foundation now has equity valued at ~$130B and still controls the OpenAI for-profit
OpenAI has completed its recapitalization, simplifying its corporate structure. The nonprofit remains in control …
OpenAI Bret Taylor
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Discussion
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@parikpatelcfa
@parikpatelcfa
on x
Never ask: - a woman her age - a man his salary - OpenAI what happened to their non-profit mission
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@todor_m_markov
Todor Markov
on x
>>the OpenAI Foundation appoints all members of the board of directors of OpenAI Group and can replace directors at any time This is a good lever of control and more than what I expected the nonprofit to get. Grateful to AGs Bonta and Jennings for their constructive involvement
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@cstanley
Christopher Stanley
on x
This feels like a classic bait and switch. The whole point was about a non-profit serving the public good, but now the structure funnels massive equity value into a for-profit vehicle. Calling it a “foundation” controlling a PBC doesn't change the reality that the mission shifted…
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@ejzim
Evan Zimmerman
on x
As I've said before. It'll happen. https://openai.com/...
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@scaling01
@scaling01
on x
OpenAI is no longer has a capped-profit structure they are now a PBC without a 100x ROI cap the non-profit, now called OpenAI Foundation, only holds 26% of shares capitalists have won we are in the dystopia timeline [image]
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@bjarturtomas
Tomás Bjartur
on x
Gotta admire that Altman riz. Bro stole a whole light cone from a charitable foundation.
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@michaelhpage
Page
on x
Nonprofit control = ability to hire and fire PBC directors. That control is exercised by the nonprofit's directors. The nonprofit's directors ARE the PBC's directors (with one exception). So doesn't nonprofit control ≅ PBC control?
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@ajrgd
Alex Greenland
on x
openai doesn't own openai•foundation or openaifoundation•com. they did register openaifoundation•net on 23 Oct tho. always get the domains before announcing! they also don't own oai•foundation, oaifoundation•com or oaifoundation•org. but they did register [image]
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@scaling01
@scaling01
on x
OpenAI Foundation will receive “significant additional equity” in case the OpenAI Group's share prices increases greater than tenfold after 15 years. > means: if they pump OAI to 5 trillion until 2040, the non-profit gets more equity
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@tradingvcs
@tradingvcs
on x
openai's tender offer closed at a casual $500 billion. but here's the weird part — employees didn't sell. @AmanVerjee thinks it's confidence. @davemcclure not so sure. either way, openai just passed spacex, and silicon valley's leaderboard is looking a lot more like “talladega [v…
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@sama
Sam Altman
on x
Jakub and I are going to do a livestream and answer questions today at 10:30 am pacific. We have a lot of things to talk about—of course we will cover our new corporate structure, but we will also discuss our new goals for research, the evolution of our product offerings, an
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@stocksavvyshay
Shay Boloor
on x
THIS NEW $MSFT + OPENAI PACT IS A DIRECT TAILWIND FOR $NBIS Every API product OpenAI or its partners build must run on Azure which means all inference & training workloads tied to OpenAI APIs will consume Azure compute. Nebius directly supplies that GPU capacity for Azure's [imag…
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@rihardjarc
Rihard Jarc
on x
OpenAI restructuring complete. This line stands out to me: “OpenAI has contracted to purchase an incremental $250B of Azure services. $MSFT no longer has right of first refusal.”
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@thezvi
Zvi Mowshowitz
on x
They're moving to complete the greatest theft in human history (or perhaps second biggest, if you count what happened around the dissolution of the USSR). Are we going to let them get away with this?
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@stalkermustang
Igor Kotenkov
on x
Important and easy to overlook: > Through special voting and governance rights held solely by the OpenAI Foundation, the OpenAI Foundation appoints all members of the board of directors of OpenAI Group and can replace directors at any time. > the OpenAI Foundation (new name of
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@chrisfralic
Chris Fralic
on x
The word “recap” has an entirely new meaning
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@autismcapital
@autismcapital
on x
@OpenAI One of the greatest financial heists ever.
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@obadiaalex
Alex
on x
The OpenAI Foundation will initially focus on a $25B commitment across two areas: - Health and curing diseases. - Technical solutions to AI resilience. love it!
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@openai
@openai
on x
LIVE at 10:30am PT: The future of OpenAI and Q&A with @sama and @merettm Bring your questions. https://openai.com/live
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@danprimack
Dan Primack
on x
It's official: “OpenAI has completed its recapitalization, simplifying its corporate structure. The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.” https://openai.com/...
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@openai
@openai
on x
We completed our recapitalization. The non-profit, the OpenAI Foundation, is now one of the best resourced philanthropies ever, with equity valued at ~$130B. It continues to control the OpenAI for-profit, which is now a public benefit corporation. https://openai.com/...
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@mmatt14
@mmatt14
on x
this has got to be a joke [image]
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@aiko_qstarlabs
Aiko Lang
on x
$130B non-profit foundation controlling a public benefit corporation? OpenAI just rewrote the technology governance playbook. Decentralized mission preservation meets capitalistic execution. Strategic genius.
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@kevinweil
Kevin Weil
on x
It's a big day for OpenAI! Even bigger for the OpenAI Foundation.
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@ednewtonrex
Ed Newton-Rex
on x
Now that OpenAI is officially free of its non-profit shackles, can we expect it to pay for all its training data?
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@rustybrick.com
Barry Schwartz
on bluesky
OpenAI has restructured but Microsoft is still its major shareholder [embedded post]
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r/technology
r
on reddit
OpenAI Restructures as For-Profit Company
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r/OpenAI
r
on reddit
OpenAI achieved recapitalization
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r/singularity
r
on reddit
OpenAI just restructured into a $130B public benefit company — funneling billions into curing diseases and AI safety.
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@reach_vb
@reach_vb
on x
“OpenAI is now able to release open weight models that meet requisite capability criteria.” let's gooooo
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@alexkaplan0
Alex Kaplan
on x
Huge news from MSFT on the conversion and associated changes: * $250B Azure contract (why is $MSFT not pumping like $ORCL?) * Revenue share remains in place... how does OpenAI make any margin?? * Independent panel will determine “AGI” threshold [image]
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@manifoldmarkets
@manifoldmarkets
on x
The provisions are a fascinating glimpse into OpenAI and Microsoft's bets about the future of AI and AGI. So much potential for reading between the lines. I'm not sure what to make of these: [image]
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@ajrgd
Alex Greenland
on x
fascinating 👀 [image]
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@p_maverick_b
Patrick Boyle
on x
1) Interesting that the definition of AGI has evolved from an obvious civilization-altering event to something that will need to be painstakingly determined by a panel of experts 2) Who are they going to get for that panel?! [image]
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@code_star
Cody Blakeney
on x
Hadn't had my coffee and thought this was a transformer diagram at first glance. It's not, but in a truer sense ... it is.
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@natejhake
Nate Hake
on x
@Microsoft OpenAI & Microsoft STOLE an Internet's worth of intellectual property, yet your agreement is all about IP “IP for me, not for thee” This is a contract between criminal enterprises [image]
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@johncoogan
John Coogan
on x
Super Bowl for people who know this chart. [image]
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@mattmday
Matt Day
on x
Microsoft gets two more years with OpenAI's models, and relief from a provision that had raised the prospect OAI could declare AGI and cut them off: https://www.bloomberg.com/...
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@mgsiegler
M.G. Siegler
on x
Wow they just spell it out very directly: after the most recent financing rounds, Microsoft holds a 27% stake in OpenAI (down from 32.5%).
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@microsoft
@microsoft
on x
The next chapter of the Microsoft-OpenAI partnership: https://blogs.microsoft.com/ ... [image]
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@davelee.me
Dave Lee
on bluesky
The terms of the new Microsoft/OpenAI pact are... interesting. Who's on this panel judging AGI? blogs.microsoft.com/blog/2025/ 10...
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@peark.es
George Pearkes
on bluesky
MSFT supports the OpenAI public benefit corp (PBC) change/recap. Post-recap MSFT stake will be 27% at a $500bn valuation. New agreement keeps MSFT as “frontier model partner” of OpenAI.
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NewsMax.com
NewsMax.com
on x
OpenAI Turns Public Benefit, Gives Microsoft 27% Stake
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@quantian1
@quantian1
on x
Am I crazy or is Microsoft cutting OAI loose for 27% of the company exactly what you'd do right before you massively cut capex guide tomorrow and go “who cares we have the upside and everybody else is clearly willing to foot the bill”
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@kakashiii111
@kakashiii111
on x
A lot of wins for Microsoft in this newly struck agreement: 1. 27% stake in OpenAI — one of the largest holdings, almost equal to the nonprofit's stake. 2. Secured exclusive IP rights and Azure API usage until “AGI.” 3. Microsoft's IP rights to research will remain in effect
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@firstadopter
Tae Kim
on x
More evidence @satyanadella 's prescience in investing in @OpenAI before this artificial intelligence boom was an all-time great business move.
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@firstadopter
Tae Kim
on x
We live in a world now where a $250 billlion incremental Azure order is just a minor line item in a blog post 🤣 “OpenAI has contracted to purchase an incremental $250B of Azure services, and Microsoft will no longer have a right of first refusal to be OpenAI's compute
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@danielnewmanuv
Daniel Newman
on x
$MSFT will wind up owning 27% of OpenAI. Master class from Satya Nadella turning $10-12 Billion investment into $125 Billion plus. 💪🏻 [image]
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@caro_milanesi
Carolina Milanesi
on x
Microsoft's new deal with OpenAI locks in Azure as the backbone of OpenAI's models through 2032! A massive $250B cloud commitment and a clear signal: the AI race is now a scale game
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@kingtherapy
@kingtherapy
on bluesky
“AGI-level” Microsoft is financing Narnia. [embedded post]
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@glinden
Greg Linden
on bluesky
I'd love to better understand this deal. Is it that Microsoft gets $250B (if OpenAI can get more investors) booked as profitable cloud revenue and all the IP if OpenAI goes bankrupt? And OpenAI gets more freedom in the unlikely case it doesn't go under? [embedded post]
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@westinlee
Westin Lee
on bluesky
Yeah it was looking like OpenAI didn't have much leverage. [embedded post]
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@edzitron.com
Ed Zitron
on bluesky
Microsoft got them over a barrel, basically gave up nothing, if we see a massive bump in “remaining performance obligations” on earnings then this is why. More circular financing stuff. [embedded post]
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@mgerrydoyle
Gerry Doyle
on bluesky
there are no agi-level models — anywhere [embedded post]