OpenAI's $130B Plan to Control AGI Is Finally Here

• Massive Restructure: OpenAI has completed a major recapitalization, simplifying its structure with its nonprofit arm, now the OpenAI Foundation, maintaining full control over the for-profit business.
• $130 Billion Philanthropic Powerhouse: The new OpenAI Foundation holds an equity stake in the for-profit company currently valued at approximately $130 billion, positioning it as one of the world's largest philanthropic organizations.
• $25 Billion Initial Commitment: The Foundation is launching its mission with a $25 billion commitment focused on two critical areas: accelerating breakthroughs in health and disease treatment, and developing technical solutions for AI safety and resilience.
• Mission Legally Enshrined: The for-profit arm has been converted into a public benefit corporation (PBC), legally binding its commercial operations to the core mission of ensuring AGI benefits all of humanity.

A New Era for OpenAI's Structure

In a move that solidifies its founding mission, OpenAI has announced the completion of a significant recapitalization. The new structure, detailed by Board Chair Bret Taylor, simplifies the relationship between its nonprofit and for-profit entities, ensuring the organization's goal of benefiting humanity remains paramount as it pushes toward artificial general intelligence (AGI).

The original nonprofit is now rebranded as the OpenAI Foundation and holds ultimate control over the for-profit arm, which has been renamed OpenAI Group PBC—a public benefit corporation. This change legally obligates the company to align its commercial success with its mission, a structure designed to prevent profit motives from overriding public interest.

The OpenAI Foundation: A Philanthropic Juggernaut

This recapitalization endows the OpenAI Foundation with an equity stake in the for-profit company valued at a staggering $130 billion. This figure instantly places the Foundation among the most well-resourced philanthropic entities globally. The structure is designed so that as the for-profit company's valuation grows, so does the Foundation's ownership, creating a powerful feedback loop for its charitable work.

A Dual Focus on Health and Safety

The Foundation will immediately deploy a $25 billion commitment across two vital domains.

Health and Curing Diseases

A significant portion of the initial funding will be dedicated to accelerating health and medical breakthroughs. The goal is to leverage AI to speed up diagnostics, improve treatments, and find cures for diseases. Initial activities will include funding scientists and creating open-source, responsibly built frontier health datasets.

Technical Solutions to AI Resilience

Recognizing the risks that accompany powerful AI, the Foundation will also invest heavily in AI resilience. Drawing a parallel to the cybersecurity ecosystem required for the internet, this initiative will support the development of practical, technical solutions to maximize AI’s benefits while minimizing its potential dangers to critical infrastructure like power grids, hospitals, and governments.

Mission-Driven Governance Solidified

The entire restructuring process was completed after nearly a year of constructive dialogue with the offices of the Attorneys General of California and Delaware. According to OpenAI, these discussions led to several changes that have strengthened the company's governance and better serve the public.

With this new framework, OpenAI aims to advance solutions to the complex challenges and immense opportunities presented by AI. The organization asserts that this structure gives it the stability and resources to continue pushing the frontiers of AI research while ensuring that its progress serves everyone.