{"id":100731,"date":"2025-10-28T22:20:00","date_gmt":"2025-10-28T22:20:00","guid":{"rendered":"https:\/\/sotnews.agency\/?p=100731"},"modified":"2025-10-28T22:20:00","modified_gmt":"2025-10-28T22:20:00","slug":"openai-completes-shift-to-becoming-for-profit","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=100731","title":{"rendered":"OpenAI completes shift to becoming for-profit"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 18 Second <\/div>\n\n <\/div>
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OpenAI has completed its conversion to a for-profit entity, a move that could allow it to raise billions of dollars in investment and potentially clear the way for a stock market debut.<\/p>\n

As part of the arrangement, OpenAI and Microsoft announced changes to their partnership that leave the tech giant with a 27% stake in the ChatGPT-maker.<\/p>\n

The deal changes the relationship between the two companies, which first partnered in 2019, when OpenAI was a non-profit artificial intelligence (AI) research organisation.<\/p>\n

Under the terms, Microsoft can now pursue artificial general intelligence \u2013 sometimes defined as AI that surpasses human intelligence \u2013 on its own or with other parties, the companies said.<\/p>\n

OpenAI also said it was convening an expert panel that will verify any declaration by the company that it has achieved artificial general intelligence.<\/p>\n

The company did not share who would serve on the panel when approached by the BBC.<\/p>\n

Microsoft will also support OpenAI\u2019s board with the conversion to a for-profit entity, which the company has confirmed boss Sam Altman will not hold an equity stake in, as first reported by Bloomberg.<\/p>\n

The original partnership between the companies gave Microsoft rights to much of what OpenAI produced at a time when the startup was hungry for cloud computing resources.<\/p>\n

OpenAI has since gone on a deal spree with a host of other major tech players leading to speculation that an\u00a0AI bubble\u00a0may be in the offing.<\/p>\n

The revised deal extends Microsoft\u2019s rights to OpenAI\u2019s AI models through to 2032 but excludes consumer hardware.<\/p>\n

Microsoft\u2019s market cap crossed the $4tn mark on Tuesday for the second time ever after the announcement.<\/p>\n

It first reached that milestone in July, following chip designer Nvidia to become just the second publicly-traded company to do so.<\/p>\n

OpenAI\u2019s trajectory<\/h2>\n

OpenAI brought AI to the mainstream user in 2022 with the introduction of ChatGPT.<\/p>\n

At the company\u2019s DevDay event in San Francisco earlier this month, Mr Altman said the company had reached 800mn weekly active users.<\/p>\n

OpenAI \u2013 now valued at $500bn \u2013 has released a slew of new products aimed at increasing engagement with its AI tools.<\/p>\n

These include the AI-powered browser\u00a0ChatGPT Atlas, which competes with Google Chrome, and a video generation tool called Sora.<\/p>\n

But the company also routinely finds itself at the centre of controversy.<\/p>\n

Last week, OpenAI\u00a0blocked\u00a0Sora 2 from creating deepfake videos portraying Dr Martin Luther King Jr after intervention from the late civil rights leader\u2019s family.<\/p>\n

OpenAI also recently said ChatGPT would soon start\u00a0allowing erotica\u00a0for verified adults.<\/p>\n

Meanwhile, critics say OpenAI has\u00a0downplayed\u00a0the potential mental health implications of its AI tools which they charge are being built with few guardrails in the pursuit of profits.<\/p>\n<\/div>\n

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