OpenAI Restructure Progress Eases Investor Concerns, Microsoft's (MSFT) Ties Bolster AI Growth Outlook

Microsoft Corp. (NASDAQ:MSFT) is one of the best ESG stocks to buy now according to hedge funds. On September 12, Bloomberg reported that OpenAI is close to finalizing a governance overhaul that would convert it into a more conventional for-profit structure, while granting its nonprofit arm an equity stake of at least $100 billion. Bret Taylor, Chairman of OpenAI’s board, stated that the nonprofit will maintain controlling authority through a new public benefit corporation, ensuring oversight of OpenAI’s long-term mission.

The stake, which could grow beyond the $100 billion floor, would translate into roughly 20% ownership if the company proceeds with an employee share sale valuing OpenAI at $500 billion. That transaction would cement its status as the world’s most valuable startup.

The move follows months of negotiations with Microsoft, OpenAI’s largest backer, whose approval was critical to advancing the restructuring. For Microsoft, the deal preserves deep integration rights for OpenAI’s tools and helped ease investor concerns, with a positive reaction to share prices.

The story gained prominence in early May when OpenAI discussed its plans to restructure its for-profit division as a public benefit corporation. Given the implications for both OpenAI and Microsoft, we had also highlighted this development in our June 24 article, Harvard University Stock Portfolio: Top 10 Stock Picks.

Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.

While we acknowledge the potential of MSFT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT:  Best Stocks For Day Trading: 12 Stock Picks and 15 Best Multibagger Stocks to Invest in Right Now.

Disclosure: None. This article is originally published at Insider Monkey.