Microsoft(US:MSFT) Zhi Tong Cai Jing·2025-10-30 00:59Core Viewpoint - OpenAI has completed its restructuring to transition into a more traditional profit-driven entity, aiming to attract more investors, despite facing legal challenges and governance concerns [1][2][3]. Group 1: Restructuring Details - OpenAI's non-profit entity has been renamed OpenAI Foundation, holding approximately $130 billion in equity of the profit-making division, now called OpenAI Group PBC [2]. - The new structure allocates 26% of shares to the OpenAI Foundation, 47% to current and former employees and investors, and 27% to Microsoft, valued at around $135 billion [2]. - The OpenAI Foundation retains special voting rights and governance authority, allowing it to appoint and replace the board members of OpenAI Group PBC, ensuring control over public interest [2][3]. Group 2: Financial Implications - OpenAI plans to invest $1.4 trillion in AI infrastructure, including data centers and talent, to support AI development [3]. - The company aims to raise unprecedented funds through venture capital, debt financing, and an eventual IPO, with the IPO being the most likely path for financing [3]. - The restructuring simplifies the equity structure, removing the "profit cap" model, allowing shareholders to share in the company's growth [3]. Group 3: Governance Concerns - There are unresolved questions regarding the influence of the non-profit organization over the profit-making entity, particularly in terms of board member appointments and executive dismissals [4][5]. - Critics express concerns about the independence and accountability of the non-profit organization, questioning its ability to effectively oversee the profit-driven entity [5]. - The non-profit organization holds significant resources but lacks clarity on its management and operational plans [5]. Group 4: Microsoft Relationship - The relationship between OpenAI and Microsoft has become more complex, with Microsoft holding 27% of the new profit entity but lacking decision-making power [6]. - An independent group will determine when OpenAI achieves "general artificial intelligence" (AGI), at which point Microsoft's revenue-sharing agreement will cease [6]. - The future use of OpenAI's intellectual property by Microsoft remains uncertain, raising questions about competitive dynamics [6]. Group 5: Ongoing Legal Challenges - Elon Musk continues to contest the restructuring, indicating potential legal battles ahead [7].