OpenAI has completed a transition to a for-profit public benefit corporation called OpenAI Group PBC.

The original non-profit is now called the OpenAI Foundation, and it will hold a 26 percent stake in the PBC worth around $130 billion. Early backer Microsoft, meanwhile, will own a 27 percent stake worth $135bn.

Microsoft, which invested more than $13bn into OpenAI, previously held a 32.5 percent stake in the for-profit business.

After its initial 2019 investment, Microsoft became OpenAI's sole compute provider until the breakout success of ChatGPT led OpenAI to demand more compute.

This January, OpenAI announced Stargate, a $500bn joint venture with cloud provider Oracle (as well as SoftBank, OpenAI, and Abu Dhabi's MGX). At the time, Microsoft said it had a right of first refusal for any cloud contracts.

That right is now gone with the for-profit shift. OpenAI will continue to use Azure, with the company contracted to purchase an incremental $250bn of the company's cloud services over an undisclosed time period.

Microsoft will continue to have exclusive IP rights and Azure API exclusivity until Artificial General Intelligence (AGI) is met. What constitutes AGI was previously set to be defined by OpenAI, but will now be decided by an independent expert panel.

Microsoft’s IP rights for both models and products have been extended through 2032 and now include models post-AGI. Those IP rights include any IP related to data center hardware and software, but exclude OpenAI’s consumer hardware.

Microsoft will also now be able to independently pursue AGI alone or in partnership with third parties. But, should Microsoft use OpenAI’s IP to develop AGI, prior to AGI being declared, the models will be subject to compute thresholds. The companies said that those thresholds "are significantly larger than the size of systems used to train leading models today."