OpenAI has completed its transition into a for-profit public benefit corporation (PBF), ending years of hybrid governance and clearing the way for new capital raising. The move gives Microsoft a 27% stake in the company, valuing the AI pioneer at around US$ 135 billion and pushing the tech giant’s market capitalization past the $4 trillion mark.
The company’s board, chaired by Bret Taylor, will continue to operate under the oversight of its nonprofit parent —now renamed the OpenAI Foundation— which remains responsible for safeguarding its mission. Microsoft stands out as both a major investor and strategic partner. The restructuring reflects OpenAI’s push for greater flexibility in capital markets and a stronger focus on commercializing its large language models and AI products.
From a market perspective, the deal moves two key levers. First, it reduce risks for the corporate structure of OpenAI, which had been stymied by questions around its nonprofit versus for-profit hybrid governance and fundraising limitations. The PBC conversion reportedly removes a regulatory overhang and unlocks new investment possibilities. Second, it contributes to Microsoft’s surge: its stake in OpenAI, following an investment of roughly US$ 13.8 billion, is now implied to be worth some US$ 135 billion, a ten-fold return. The timing, in the midst of a broader AI-investment boom, has seen Microsoft reclaim the “US$ 4 trillion club” level alongside rivals.
Nevertheless, a number of caveats remain. While the 27% figure is widely reported, earlier negotiations had seen Microsoft seeking a larger stake (around 33%) in the restructured unit, in exchange for giving up certain rights to future profits, and OpenAI resisting that. Furthermore, despite the rebranding to a PBC, some observers remain sceptical about how effectively the nonprofit parent can enforce mission constraints once commercial pressures intensify.
The recalibration of OpenAI’s structure hints at a new phase of monetization for generative-AI companies, one in which access to capital, equity stakes and public market readiness become as important as model breakthroughs. Microsoft’s elevated valuation and reinforced stake raise the bar for “AI platform ownership” and cloud-AI integration. At the same time, the blurred lines between profit motive and public mission in the PBC construct will draw regulatory and governance scrutiny ahead.
