aipartnership

OpenAI and Microsoft Sign Non-Binding Agreement to Restructure, Move Toward Public Benefit Corporation

OpenAI and Microsoft have signed a non-binding Memorandum of Understanding (MOU) for a new phase of their partnership aimed at restructuring OpenAI’s business.

Under the proposal, OpenAI’s for-profit arm would transition to a public benefit corporation, while its nonprofit parent would remain in control of the overall mission.

The nonprofit arm will receive a stake valued at over $100 billion, tied to a valuation of around $500 billion for the for-profit entity.

Approval from state attorneys general in California and Delaware will be required for the restructuring.

The agreement is part of OpenAI’s effort to raise more capital, clarify governance, and allow for broader access to cloud compute contracts (not limited to Microsoft).

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