In late 2024, OpenAI, still recovering from the aftershock of the brief, messy ousting of Sam Altman, initiated what it hoped would be a relatively straightforward process of converting to a more traditional for-profit business that would be more appealing to investors.

The deal is the latest move by OpenAI to integrate retail platforms into its hugely popular chatbot. PayPal stock surged on the news.

“Traditional classifiers can have high performance, with low latency and operating cost," OpenAI said. "But gathering a sufficient quantity of training examples can be time-consuming and costly, and updating or changing the policy requires re-training the classifier."

Artificial intelligence startup OpenAI is preparing to file for an initial public offering as soon as next year that could give the company a market capitalization of $1 trillion, Reuters reported Wednesday,

Microsoft and OpenAI unveil a deal extending IP rights, adding independent AGI verification, and giving both sides more freedom while maintaining Azure ties.

The shift establishes a nonprofit foundation overseeing a for-profit corporation, allowing the world’s most valuable startup to woo investors and secure funds.

The nonprofit arm, now called the OpenAI Foundation, will have a $130 billion stake in the for-profit enterprise.

Microsoft and OpenAI announced the long-awaited details of their new partnership agreement Tuesday morning — with concessions on both sides that keep the companies aligned but not in lockstep as they move into their next phases of AI development.

OpenAI has completed its conversion to a for-profit entity, a move that could allow it to raise billions of dollars in investment and potentially clear the way for a stock market debut. As part of the arrangement, OpenAI and Microsoft announced changes to their partnership that leave the tech giant with a 27% stake in the ChatGPT-maker.

After months of back-and-forth with regulators and stakeholders, OpenAI said it has completed the process of restructuring as a more traditional, for-profit company – a key step in its bid to secure billions more in capital to build cutting-edge artificial intelligence products.

The deal removes a major constraint on raising capital for OpenAI, which was founded as a nonprofit AI safety group.

Both companies were back at it on Tuesday, announcing deals that once again added billions in value to public companies.