OpenAI has completed a significant recapitalization, transforming its corporate structure to enable faster growth and capital raising while maintaining its mission to ensure artificial general intelligence (AGI) benefits all humanity. The nonprofit, now called the OpenAI Foundation, holds a $130 billion equity stake in the for-profit entity, which is valued at approximately $500 billion after a fivefold increase from $100 billion. This restructuring allows OpenAI to operate with greater independence, pursue strategic partnerships, and prepare for a potential public listing. The partnership with Microsoft remains central, with Microsoft holding about 27% of OpenAI's equity, valued at $135 billion, down from a previous 49% profit share. The new deal extends Microsoft's IP rights through 2032, including models post-AGI, and allows OpenAI to develop products with third parties, with API products remaining exclusive to Azure. OpenAI gains increased flexibility to pursue AGI independently and collaborate with external infrastructure providers like Nvidia and AMD. The restructuring was driven by the need for OpenAI to access more capital and reduce dependency on Microsoft, which had previously entailed close regulatory scrutiny. The deal involved extensive negotiations, with regulators convinced by the improved financial structure that benefits the public interest. OpenAI's new model includes warrants for the nonprofit to receive shares tied to extraordinary outcomes, such as achieving AGI. In parallel, Microsoft’s support has been reinforced with a new agreement emphasizing long-term cooperation, including a sustained investment of approximately $135 billion and exclusive rights to OpenAI’s models until 2032. The partnership aims to accelerate AI development responsibly, with both companies committed to innovation, safety, and broad societal benefit. Furthermore, OpenAI is investing heavily in AI research, including breakthroughs like DeepSeek’s new method to lower AI processing costs by converting text into images, which retains high accuracy while reducing computational requirements. The industry continues to see rapid AI adoption, with global corporate spending on AI tools expected to reach $76 billion by 2029, reflecting the sector's focus on efficiency and innovation. Overall, these developments mark a new era for OpenAI and Microsoft, positioning them as leaders in AI technology and setting the stage for future advancements, including a potential public offering and further technological breakthroughs.