ORGANIZATION
OpenAI
Founded in December 2015 by Sam Altman, Elon Musk, Ilya Sutskever, Greg Brockman and others as a non-profit research organisation pursuing safe artificial general intelligence. Initially committed to open publication of research, it shifted to a capped-profit subsidiary (OpenAI LP) in 2019. Through the GPT series, DALL·E, Whisper, and ChatGPT it became the centre of the generative-AI boom. With more than US$13 billion in cumulative investment from Microsoft, its character as a commercial organisation has steadily strengthened.
Organization
- Founded
- 2015
- Status
- Active
- Active for
- 11 years
- Appearances
- 11
- Name
- ENOpenAIJAOpenAI
OpenAI
OpenAI is an American artificial-intelligence research organisation founded in December 2015 by Sam Altman, Elon Musk, Ilya Sutskever, Greg Brockman, and others under the banner of "artificial general intelligence that benefits all of humanity". It began as a non-profit, added a capped-profit subsidiary (OpenAI LP, later OpenAI Group PBC) in 2019, and during the 2025-2026 restructuring shifted to a hybrid holding-company architecture. Through GPT-series models and ChatGPT (2022) OpenAI sat at the centre of the generative-AI boom; a March 2026 funding round took it to a US$852 billion post-money valuation, making it the most valuable private technology company in the world.
History
At its founding OpenAI emphasised open publication; in 2016 it released the OpenAI Gym reinforcement-learning environment, and in 2017 popularised the PPO algorithm. Following the Transformer paper (Google Brain, 2017), OpenAI scaled that lineage stepwise — GPT-1 (2018), then GPT-2 (2019), whose staged weight release on stated safety grounds drew significant controversy.
In 2019 OpenAI grafted on a capped-profit subsidiary, OpenAI LP, and accepted a US$1 billion strategic investment from Microsoft, making Azure its exclusive compute platform. GPT-3 in 2020 (175 billion parameters) established the commercial API business; GitHub Copilot followed in June 2021, and the November 2022 launch of ChatGPT reached 100 million monthly active users in roughly two months. GPT-4 (March 2023), GPT-4V and DALL·E 3 (September 2023), the real-time multimodal GPT-4o (May 2024), the o1 family of "reasoning models" that perform internal chains of thought at inference time (September 2024), and the o3 and GPT-5 generations in 2025-2026 have continuously redefined the frontier.
Organisationally, in November 2023 the board removed Altman as CEO; he was reinstated five days later under pressure from a letter signed by more than 700 employees — the Altman firing crisis. The board was subsequently reconstituted with independent directors including Bret Taylor (Chair), Adam D'Angelo, and Larry Summers. In 2025-2026 a deeper capital restructuring established the OpenAI Foundation (non-profit) as parent of OpenAI Group PBC, with Microsoft holding roughly 27 per cent. As of May 2026 OpenAI is reported to have confidentially filed for an IPO, targeting a listing later that year.
Products and Services
| Category | Product | Description |
|---|---|---|
| Conversational AI | ChatGPT (Free / Plus / Pro / Team / Enterprise / Edu) | Around 800 million weekly active users in 2026 |
| API platform | OpenAI Platform, Responses API, Realtime API | GPT-5, o3, o4-mini, GPT-4o-mini |
| Developer tools | Codex, GitHub Copilot (via Microsoft), Operator | Autonomous agents and code generation |
| Creative | DALL·E 3, Sora (video), Whisper (speech) | Image, video, audio |
| Public sector | US DoD CDAO, ChatGPT Gov for the US intelligence community | From 2024 |
By April 2026 annualised revenue was estimated above US$10 billion (roughly double the rate at the start of 2026). The commercial core is the Microsoft Azure OpenAI Service plus direct ChatGPT Enterprise contracts.
Key Events
- February 2018: Elon Musk leaves the board, later citing conflicts with Tesla.
- July 2019: OpenAI LP formed; Microsoft invests US$1 bn.
- June 2020: GPT-3 released, commercial API opened.
- November 2022: ChatGPT launched; 1 million users in 5 days, 100 million in 2 months.
- March 2023: GPT-4 released. Italy temporarily blocks ChatGPT under GDPR.
- November 2023: Altman fired, reinstated in 5 days; Mira Murati serves as interim CEO before his return.
- May 2024: GPT-4o announced with real-time voice and vision. Sutskever and Jan Leike, leading "Superalignment", depart.
- September 2024: o1 reasoning model family announced.
- November 2024: As Anthropic-Palantir partnership for the US intelligence community makes news, OpenAI signs directly with the DoD CDAO.
- 2025-2026: GPT-5, o3, o4-mini, commercial Sora; restructuring of the capped-profit; participation in the Stargate infrastructure programme.
- March 2026: US$122 bn raised at an US$852 bn post-money valuation. In May, confidential IPO filing reported.
Key Metrics
- Valuation: US$852 bn post-money (March 2026); pre-IPO talks have referenced figures into the trillions
- ARR: above US$10 bn as of April 2026
- Employees: about 5,000 (early 2026)
- Cumulative investment: about US$13 bn from Microsoft, plus rounds led by SoftBank Vision Fund, Thrive Capital and others
- Compute: a planned share in the US Stargate programme (OpenAI / Oracle / SoftBank / MGX), targeting up to US$500 bn of data-centre buildout
Influence and Criticism
ChatGPT turned large language models into a consumer commodity and simultaneously rewrote Google's search dominance and Microsoft's cloud strategy. But the tension between the founding promise of "safe AGI for all" and the rapid commercialisation routed through the for-profit subsidiary continues to destabilise the company. The November 2023 board coup was read as the surfacing of a long-running split between the safety wing (Sutskever, Helen Toner) and the commercial wing. Since then, safety-oriented founding-era talent has tended to leave: Sutskever started Safe Superintelligence (2024), the Amodei siblings founded Anthropic in 2021, and Mira Murati founded Thinking Machines in 2025.
Litigation is heavy. The New York Times sued OpenAI and Microsoft for copyright infringement in December 2023; comparable suits have come from the Authors Guild, the Wall Street Journal, Canadian publishers, and the BBC. Elon Musk filed a "violation of founding mission" suit in 2024, dropped it, and refiled. Under the EU AI Act, the systemic-risk obligations placed on general-purpose AI fall first on frontier models like OpenAI's.
On labour and ethics, TIME reported in 2023 that ChatGPT's RLHF data-labelling pipeline relied on Kenyan workers — sub-contracted via Sama at around US$2 per hour — to filter toxic content. Altman's personal investments in the nuclear startup Helion Energy and the biometric-ID venture Worldcoin from 2024 onward have extended OpenAI-adjacent influence into surrounding ecosystems; governance critique is likely to keep recurring.
Appearances
- July 2019Microsoft Invests US$1 Billion in OpenAIMicrosoft announced a US$1 billion investment in OpenAI alongside an exclusive cloud partnership. OpenAI was, at that point, a research organisation that had just released GPT-2; the deal nevertheless became the move that defined the industry structure once the generative-AI boom arrived in 2022–23. An additional US$10 billion in January 2023 and the integration of GPT-4 into Bing in February 2023 cemented Microsoft's lead in the AI competition.
- June 2020GPT-3 AnnouncedOpenAI's 175-billion-parameter language model. A more-than-hundredfold scale-up from GPT-2 (1.5B), it demonstrated 'few-shot' competence across text generation, summarisation, translation, and code—handling many tasks from a few in-prompt examples. The result pushed the research conversation toward scaling laws for large language models and reshaped the direction of AI investment.
- June 29, 2021GitHub Copilot — The Start of AI-Assisted CodingGitHub and OpenAI released Copilot as a technical preview—an AI pair programmer that autocompletes code inside the editor. Powered by OpenAI's Codex (GPT-3 fine-tuned on code), it could generate entire functions from a partial implementation or a docstring. It became a paid subscription in June 2022. Lawsuits over copyright licenses and the 'derivative work' status of GitHub's public code followed (Doe v. GitHub, 2022), but the product reshaped the developer experience across the industry and seeded the 2025 'AI coding IDE' competition among Cursor, Claude Code, Windsurf, and others.
- November 30, 2022ChatGPT LaunchedOpenAI made ChatGPT publicly available—GPT-3.5 fine-tuned for dialogue and accessible free through any browser. One million users within five days; one hundred million within two months (the fastest growth of any consumer internet service to that point). Overnight, generative AI moved from a specialist research conversation into homes, schools, and workplaces, and prompted strategic pivots at Google, Meta, Anthropic, and Microsoft.
- January 23, 2023Microsoft Invests Another US$10 Billion in OpenAITwo months after ChatGPT's launch, Microsoft announced a multi-year, multi-stage extension of its investment in OpenAI. Reporting cited a total in the order of US$10 billion, which, with the 2019 US$1 billion, made it the largest AI-related investment in history. Azure became OpenAI's exclusive cloud, and GPT-4 was integrated across Microsoft's product line—Bing, Office, Teams, Windows, GitHub. Under the deal, Microsoft would receive a share of OpenAI's profits beyond a capped threshold; the two companies' finances became effectively inseparable.
- February 7, 2023New Bing and Microsoft Copilot — LLMs Enter SearchMicrosoft unveiled 'New Bing'—Bing search with GPT-4-based chat integrated—and announced its plans to bring Copilot to Microsoft 365 in the same period. Only two months after the ChatGPT launch, this brought LLMs into the central battlefronts of search and productivity software at once, and triggered the industry-wide pivot to 'how do we integrate an LLM into our existing product?'. Google announced Bard the following day in response.
- March 14, 2023Anthropic Releases Claude — A Safety-First Rival LLMAnthropic—founded in 2021 by the Amodei siblings (Dario and Daniela) and others after their departure from OpenAI—released Claude, its conversational LLM, to the public. By coincidence OpenAI announced GPT-4 the same day. Anthropic emphasises its own safety methodology (Constitutional AI), and the two-pole structure of generative AI was established. Google invested US$400 million in 2023; Amazon committed up to US$4 billion over 2023–24. Anthropic grew into the most well-capitalised counter-pole to OpenAI.
- March 14, 2023GPT-4 — Going MultimodalOpenAI announced GPT-4. The first major LLM to accept image input, it posted top-decile scores on the US Bar exam and AP tests. Parameter counts, training data, and architectural details were withheld—marking OpenAI's shift from the 'publish-and-research' posture of GPT-3 toward a more commercially closed research organisation.
- November 17–22, 2023The OpenAI Coup — Altman Fired, Reinstated in Five DaysOn 17 November, the OpenAI board fired Sam Altman as CEO, citing 'a lack of consistent candour in his communications with the board'. The dismissal grew out of tensions between AI-safety and acceleration factions and questions about Altman's conduct. About 700 of 770 employees signed a letter threatening to resign; Microsoft signalled it would take Altman aboard; and within five days, on 22 November, Altman was reinstated. The safety-leaning directors were removed, and Bret Taylor (chair), Larry Summers, and Adam D'Angelo joined the new board. The episode is remembered as a shock to the very governance structure of the AI industry.
- January–November 2024AI Goes to War — OpenAI Policy Reversal and the Anthropic-Palantir-AWS PactOn 10 January, OpenAI quietly removed the 'military and warfare' prohibition from its usage policy, opening the door to defense work. In November of the same year, Anthropic announced a partnership with Palantir and AWS to provide Claude to the US intelligence and defense community. The pretense that generative AI was a peaceful Silicon Valley tool fell away; AI was openly recast as critical national-security infrastructure. A US Department of Defense collaboration with OpenAI was also disclosed in the same year; the integration with the military-industrial complex passed a point of no return.
- January 20–23, 2025The Trump AI Pivot — Biden's Order Rescinded, Stargate's $500 Billion PledgeOn 20 January, the second Trump administration took office and rescinded Biden's AI Executive Order (EO 14110) on day one, pivoting US policy to liberalisation of AI development and 'American AI dominance'. The following day, the White House announced the Stargate Project—a joint venture of OpenAI, Oracle, and SoftBank to invest up to US$500 billion in data centres, power, and chips over four years. On 23 January, a new executive order on 'Removing Barriers to American Leadership in Artificial Intelligence' was signed, formalising AI as national strategic infrastructure. Against US-China competition, AI was now positioned as a sovereign asset.