GlossaryBusinessNew to AI

Affiliates

Companies that are related to or controlled by another company.

In plain terms

Affiliates are companies that are connected to a larger company. This connection can mean they are owned by the same parent company or have a significant business relationship.

For example, if Company A owns 51% of Company B, then Company B is an affiliate of Company A. This relationship is important for legal and business reasons, such as in contracts or when defining responsibilities.

The expert version

Affiliates are entities that control, are controlled by, or are under common control with another entity. Control is typically defined as owning more than 50% of the voting stock or having the power to direct management and policies. This definition is crucial in legal agreements, such as data processing addenda or advertising terms, to clarify responsibilities and liabilities across related business units.

Why it matters now

Recent filings from OpenAI and Meta mention affiliates in contexts related to business operations and financial disclosures. OpenAI's Advertising and Merchant Feed Terms, along with its Data Processing Addendum, reference affiliates in relation to service usage and data handling. Meta's filing discusses a CEO's stock sale, touching on corporate structure and financial relationships.

Where it shows up 4 items, newest first
How each company uses it
Meta Meta AI
Meta's filings may refer to affiliates in the context of its corporate structure and financial dealings, such as executive stock sales.
OpenAI ChatGPT
OpenAI's terms of service, including those for advertising and data processing, define and address how affiliates are treated in relation to its services and customer agreements.
Related terms

SubsidiaryParent companyControlLegal entityTerms of ServiceData Processing Addendum

Often confused with
Partner
A partner is typically an independent entity that collaborates on a pro
Supplier
A supplier provides goods or services to a company but is not necessar
Origin

The term 'affiliate' has a long history in corporate law and business, referring to a relationship of connection or association between entities. Its specific legal definition often varies by jurisdiction and context.

Try this about 5 minutes

Look for the 'affiliates' clause in the terms of service for any online service you use. This will help you understand which related companies might also be covered by the agreement you are accepting.

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Questions people ask

What is the main difference between an affiliate and a partner?
An affiliate is typically owned or controlled by another company, while a partner is usually an independent entity that collaborates with another company.
Why do companies care about defining affiliates in their terms?
Defining affiliates clarifies which entities are bound by the terms of service, ensuring consistent application of rules and responsibilities across related businesses.

First seen on Subvolts Sep 4, 2026. Updated Oct 5, 2026. Written by an AI model from the items above and reviewed against them weekly; report an error.