OpenAI completes recapitalization to form for-profit corp
28 Oct 2025, 09:22 PMMicrosoft will hold around 27% stake in OpenAI's for-profit corporation.
Team Head&Tale
Share the story on
OpenAI said it has completed its recapitalization, allowing the AI startup to form a for-profit corporation within a non-profit foundation.
As part of the new structure, the non-profit called OpenAI Foundation, will hold equity in for-profit, which currently is valued at $around $130 billion, said OpenAI in a blogpost.
"The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives," it added.
In a separate blogpost, Microsoft, its investor, noted that the tech giant supports the OpenAI board moving forward with formation of a public benefit corporation (PBC) and recapitalization. Microsoft added it will hold around 27% stake in the for-profit corporation.
Last month, OpenAI and Microsoft had announced that they have signed a non-binding agreement to pave for this recapitalization.
OpenAI started as a non-profit organization and is controlled by a nonprofit board. Microsoft invested in OpenAI in 2019 but as OpenAI grew at a fast clip and products between the two companies competed with each other there has been friction between them.
Notably, Elon Musk, one of the co-founders of OpenAI, has been strongly resisting to the formation of OpenAI's for-profit corp and has also made legal efforts to prevent it.
Who Reads Us
“I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest, and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.”
“Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.”
“The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.”
“What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.”
“I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.”
