After some tense months while the company was under investigation by the state attorney general's office, OpenAI announced Tuesday that it had completed its restructuring, with its nonprofit arm, the OpenAI Foundation, in control of its for-profit business.

There was a threat that got leaked to the Wall Street Journal last month that OpenAI executives were seriously considering relocating the company out of state, with Attorney General Rob Bonta's office investigating and questioning the company's plan to restructure as a for-profit public benefit corporation. But that storm seems to have passed, the restructuring process is complete, and Bonta has given it his blessing, saying that his office will not be challenging it in court.

"OpenAI was founded in 2015 as a nonprofit; its mission is to ensure artificial general intelligence benefits all of humanity. Today, OpenAI remains a nonprofit dedicated to that same mission," the company said in a Tuesday announcement.

"The OpenAI Foundation controls the for-profit business, which was established in 2019, keeping our mission at the center," the statement continues. "The for-profit is now a public benefit corporation, called OpenAI Group PBC—with the same mission as the OpenAI Foundation—which ensures the company's mission and commercial success advance together."

The change, which it characterizes as a recapitalization, gives the OpenAI Foundation an equity stake in the for-profit company, and that stake is currently valued at $130 billion — which, as the Chronicle points out, makes it "one of the world’s wealthiest nonprofits."

According to the announcement, the foundation will begin by committing $25 billion to two separate projects: funding scientific work to cure diseases, and creating a "resilience layer" for AI security and safety.

In the healthcare space, the nonprofit seeks to "accelerate health breakthroughs so everyone can benefit from faster diagnostics, better treatments, and cures," the company says.

And in terms of AI safety, they talk about "maximizing AI’s benefits and minimizing its risks," through the creation of "practical technical solutions for AI resilience."

"Just as the internet required a comprehensive cybersecurity ecosystem — protecting power grids, hospitals, banks, governments, companies, and individuals— we now need a parallel resilience layer for AI," the company says.

Microsoft maintains a 27% stake in OpenAI Group, under the reorganization, and will be OpenAI main technology partner through at least 2032. As the Chronicle notes, Microsoft's stake is worth around $135 billion.

There has been considerable pushback over OpenAI's plan to become a public benefit corporation, including from a coalition of labor and nonprofit groups in California — and from co-founder Elon Musk, whose possibly faux outrage may also have been motivated by the fact that he's launched an AI competitor, xAI. (In August, xAI also filed a lawsuit against OpenAI and Apple, claiming anticompetitive behavior.)

But this week OpenAI says that its "constructive dialogue" with the AGs in California and Delaware, where it and many other companies are incorporated, resulted in changes to the plan that have been for the better.

Bonta put out a statement, saying, "Over the last year and a half, my office has conducted a robust investigation into OpenAI’s initial plan to restructure, followed by its revised plan to recapitalize. This included extensive negotiations with OpenAI, and we secured concessions that ensure charitable assets are used for their intended purpose, safety will be prioritized, as well as a commitment that OpenAI will remain right here in California. With these important concessions in place, we will not be in court opposing OpenAI’s recapitalization plan."

So that's that. OpenAI will simultaneously continue creating more powerful AIs that could ultimately destroy us, and giving money to the cause of preventing that destruction. Any questions?

Previously: OpenAI Rumored to Be Considering Move Out of California Due to Pushback Over Restructuring

Top image: Open AI CEO Sam Altman speaks during Snowflake Summit 2025 at Moscone Center on June 02, 2025 in San Francisco, California. Snowflake Summit 2025 runs through June 5th. (Photo by Justin Sullivan/Getty Images)