OpenAI creates capped-profit LLC capping investor returns at 100x, then takes $1 billion from Microsoft

OpenAI announced in March 2019 the creation of a "capped-profit" subsidiary—OpenAI LP—that would allow it to take investor capital and offer equity to employees while limiting returns to 100 times any investment. The nonprofit OpenAI, Inc. retained control through a controlling interest in OpenAI GP LLC, which governed the LP. Microsoft subsequently invested $1 billion in the new structure, migrating OpenAI's computing infrastructure to Microsoft Azure. The restructuring transformed OpenAI from a research nonprofit into a commercially viable entity while nominally preserving the nonprofit's governance authority.