OpenAI restructures as the capped-profit OpenAI LP

OpenAI said on 11 March 2019 that it had created OpenAI LP, a capped-profit company controlled by its original nonprofit board, in order to raise investment. Returns to first-round investors were capped, with profit beyond the cap passing to the nonprofit.

Why it mattered The structure let OpenAI raise sums a nonprofit could not, and prepared the ground for Microsoft’s $1 billion investment four months later.