By reaching a new agreement with Microsoft, OpenAI has completed a controversial for-profit reorganization. OpenAI CEO Sam Altman disclosed in a live broadcast announcing the completion of the reorganization on October 28 local time that the company plans to significantly expand the scale of infrastructure investment, with the ultimate goal of investing US$1 trillion in infrastructure every year.

The picture shows OpenAI CEO Sam Altman (Photo source: Vision China)

Altman revealed that OpenAI has so far committed to investing approximately US$1.4 trillion in infrastructure, equivalent to approximately 30 gigawatts (GW) of data center capacity. This total includes previously announced transactions between OpenAI and partners such as AMD, Broadcom, Nvidia, and Oracle.

Altman said that this is only the starting point.In the long run, OpenAI hopes to establish a technical and financial system that can add new production capacity at a rate of 1GW per week, at a cost of approximately US$20 billion per GW. Altman admitted that this means OpenAI will eventually need to achieve hundreds of billions of dollars in annual revenue. Altman said OpenAI is on a steep growth curve towards this goal and still faces technical and financial obstacles.

OpenAI Completes Controversial Profitable Restructuring (Image Source: Visual China)

It is worth noting that on October 28, local time, Microsoft and artificial intelligence (AI) research firm OpenAI announced an agreement, which mainly concerns the restructuring of the OpenAI architecture and the cooperation of the two sides in the field of AI.

Driven by this boost, on October 28 local time, Microsoft closed $542.07, with a market value of $4 trillion.

Microsoft closed $542.07, $4 trillion on the market

According to company press releases, OpenAI has completed its reorganization, its non-profit entity is now renamed the OpenAI Foundation and holds approximately US$130 billion in equity in the for-profit sector. OpenAI's for-profit arm was transformed into a public benefit corporation called OpenAI Group PBC.

Under the new architecture, the OpenAI Foundation will hold 26 percent of the shareholding, with current and former employees and investors holding a combined 47 percent, while Microsoft, the largest shareholder of OpenAI, will receive 27 percent of the shareholding, worth approximately $135 billion.

Previously, Microsoft held a share of about 32.5% without the latest funding round. According to current public information, Microsoft has supported OpenAI since 2019 and has accumulated investments of more than $13 billion.

OpenAI announced plans to restructure its architecture in December last year to better attract external investments.After completing its latest secondary stock sale, OpenAI was valued at $500 billion in the private market.

OpenAI said: ¡°The more successful the business of OpenAI is, the higher the value of the shares held by the non-profit foundation that will be used to support the foundation¡¯s public interest.¡±

The OpenAI Foundation plans to invest US $25 billion in the first phase to promote breakthroughs in the health field and research on AI security-related technologies.

At the same time, OpenAI will continue to be Microsoft's cutting-edge model partner and enjoy exclusive intellectual property rights and Azure API use rights until the technological milestone of AGI is achieved.

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