OpenAI has officially completed its long-anticipated recapitalization, transitioning from a non-profit entity into a hybrid structure that blends public benefit oversight with commercial flexibility. The newly formed OpenAI Foundation now sits atop a for-profit subsidiary called OpenAI Group, marking a pivotal shift in how one of the world’s most influential AI organizations will operate and raise capital. This structural overhaul concludes a complex and often contentious process that drew significant scrutiny from investors, regulators, and co-founder Elon Musk, who had vocally opposed the move. Under the new arrangement, the OpenAI Foundation retains legal control and a 26% ownership stake in OpenAI Group, ensuring it can still steer the company’s ethical direction. The Foundation will also hold a warrant for additional shares if the company meets growth milestones. Microsoft emerges as the largest external stakeholder, with an estimated 27% share valued at $135 billion. The remainder of the equity—roughly 47%—is distributed among investors and employees. The reorganization grants OpenAI greater latitude to raise funds, form acquisitions, and pursue ambitious R&D goals that were previously constrained by its non-profit status. In tandem with the recapitalization, Microsoft announced an extension of its intellectual property rights to OpenAI’s models through 2032, deepening its strategic partnership. Crucially, the agreement stipulates that if OpenAI claims to have achieved artificial general intelligence (AGI), it must undergo verification by an independent panel of experts. This clause reflects ongoing concerns about the safe and transparent development of advanced AI systems—an issue at the heart of global discussions on governance and accountability in the tech industry. The recapitalization follows months of negotiation and legal challenges. Elon Musk reportedly offered to buy OpenAI for $97.4 billion, while state attorneys general from California and Delaware launched inquiries into the company’s governance process. Despite the turbulence, OpenAI chairman Brett Taylor described the final structure as a necessary evolution, writing that the reorganization “ensures progress serves everyone.” The move also fulfills a key condition of SoftBank’s massive $30 billion investment announced earlier this year, which hinged on OpenAI’s ability to become a for-profit entity. With the recapitalization now complete, OpenAI positions itself to advance the frontier of artificial intelligence with both ethical oversight and market-driven momentum.