OpenAI Realignment to Give Nonprofit Over $100 Billion Stake (3)

OpenAI said it’s closer to converting into a more traditional for-profit company — nearing the resolution of painful negotiations with top shareholder Microsoft Corp. and outlining terms of at least $100 billion in equity for its nonprofit arm.

Planned changes will give the existing OpenAI nonprofit control over a new public benefit corporation, Chairman Bret Taylor said in a statement Thursday. And it would provide the nonprofit with an equity stake that would make it “one of the most well-resourced philanthropic organizations in the world,” he wrote.

Sam Altman, chief executive officer of OpenAI, is working to restructure the AI behemoth.

Photographer: Al Drago/Bloomberg

“OpenAI started as a nonprofit, remains one today, and will continue to ...