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ZDNET's key takeaways
OpenAI finalized its restructuring, prioritizing AI.
Its nonprofit arm is now called the OpenAI Foundation.
The Foundation committed $25 billion to philanthropy.
OpenAI began as a nonprofit startup, but when rumors surfaced that it would switch to a for-profit company, the company received a lot of criticism. The result was a plan to split the company into two arms: a nonprofit and a for-profit arm, which was finalized today.
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The company announced the completion of its recapitalization via a blog post and accompanying livestream on Tuesday. The nonprofit, now known as the OpenAI Foundation, will retain control of the for-profit entity, holding equity valued at approximately $130 billion or 26% of the public benefit corporation (PBC) known as OpenAI Group. With those resources, OpenAI emphasizes wanting to pursue philanthropic goals.
"The more OpenAI succeeds as a company, the more the nonprofit's equity stake will be worth, which the nonprofit will use to fund its philanthropic work," said Bret Taylor, Chair of the OpenAI Board of Directors, in the blog.
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