The companies said in a joint statement released Thursday (Sept. 11): “Microsoft and OpenAI 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.”
In a separate statement released Thursday, OpenAI Chairman of the Board Bret Taylor said the company will move ahead with a planned evolution announced in May, in which the existing OpenAI nonprofit will not only control but also have an equity stake in a public benefit corporation (PBC).
“Today, we are sharing that this new equity stake would exceed $100 billion—making it one of the most well-resourced philanthropic organizations in the world,” Taylor said. “This recapitalization would also enable us to raise the capital required to accomplish our mission—and ensure that as OpenAI’s PBC grows, so will the nonprofit’s resources, allowing us to bring it to historic levels of community impact.”
The new structure reaffirms that OpenAI’s core mission remains “ensuring AGI [artificial general intelligence] benefits all of humanity,” Taylor said.
OpenAI is currently working with the attorneys general of California and Delaware on the structure, Taylor said.
When OpenAI announced its new corporate plan in May, PYMNTS reported that by leaving the nonprofit parent firmly in control of the for-profit arm behind ChatGPT, the plan walked back a December 2024 blueprint that would have ceded voting power in exchange for easier fundraising.
Taylor said at the time that directors changed course after “hearing from civic leaders” and regulators.
Microsoft has invested billions of dollars in OpenAI, with an agreement to continue sharing revenue until 2030.
Days after OpenAI’s announcement in May, it was reported that OpenAI was reworking its multi-billion-dollar agreement with Microsoft and that Microsoft was a crucial holdout to OpenAI’s plans to restructure itself and move away from its nonprofit roots.
In August, it was reported that OpenAI’s corporate restructuring could be pushed back to next year, as the company’s negotiations with Microsoft could complicate its plans.
Source: https://www.pymnts.com/