OpenAI, the creator of ChatGPT, has announced that it has reached a nonbinding agreement with Microsoft, its largest investor, to restructure their partnership in a way that could see its for-profit arm transition into a public benefit corporation (PBC).
In a joint statement shared on X, the companies said, “OpenAI and Microsoft have signed a non-binding memorandum of understanding (MOU) for the next phase of our partnership. We are actively working to finalize contractual terms in a definitive agreement. Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety.”
OpenAI board chairman Bret Taylor explained in a blog post that the nonprofit, which currently oversees the company, will continue to retain control of operations. The nonprofit will also hold a stake in the future PBC, which is valued at over 100 billion dollars. No further details of the agreement were revealed.
The companies clarified that the agreement is a “nonbinding memorandum of understanding,” meaning it reflects intent but is not legally enforceable. Taylor also noted that OpenAI and Microsoft will coordinate with attorneys general in California and Delaware to develop the transition plan, which will require regulatory approval before taking effect.
This development comes after months of discussions between OpenAI and Microsoft on restructuring their partnership. OpenAI remains unusual among startups as it is governed by a nonprofit board, which drew global attention in 2023 when it briefly removed CEO Sam Altman before reinstating him shortly after.
At present, Microsoft holds preferred access to OpenAI’s technology and provides its primary cloud services. However, as OpenAI’s business has expanded, the company has been seeking greater flexibility. Recently, it signed a 300 billion dollar, five-year cloud deal with Oracle beginning in 2027 and partnered with SoftBank on its Stargate data centre project.
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