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OpenAI Announces Nonprofit Parent Will Hold Stake in Company Valued Over $100 Billion

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OpenAI says nonprofit parent to own stake in company over $100 billion

At the Microsoft Build 2025 conference in Seattle, Microsoft CEO Satya Nadella and OpenAI CEO Sam Altman discussed their continuing partnership, emphasizing OpenAI’s commitment to maintaining its nonprofit status. OpenAI’s nonprofit oversees its operations and holds a substantial equity stake valued at over $100 billion. This structure will enhance its capabilities as a leading philanthropic organization, allowing for ongoing capital fundraising. OpenAI also signed a non-binding memorandum with Microsoft, which has invested over $13 billion since 2019, focusing on advancing AI tools while prioritizing safety. Amid pressure from civic leaders and former employees, OpenAI reaffirmed its nonprofit roots despite its evolution into a public benefit corporation. Additionally, the organization is launching a $50 million grant initiative to foster AI literacy and community innovation. This development occurs amidst ongoing legal issues with co-founder Elon Musk, who opposes OpenAI’s for-profit trajectory.

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