Microsoft and OpenAI agree on deal that lets OpenAI change its business structure

Preliminary Agreement Paves the Way for New Corporate Structure

Microsoft and OpenAI have signed a non-binding memorandum of understanding (MOU) marking the next phase in their partnership. Announced Thursday, this preliminary agreement sets the stage for a definitive contract and clears a significant hurdle for OpenAI's planned corporate restructuring. The arrangement must still receive regulatory approval before it becomes official.

Joint Commitment to AI Safety and Innovation

In a joint statement, both companies emphasized their mutual focus on delivering the best AI tools and upholding shared principles of safety:

  • Both parties are "actively working to finalize contractual terms in a definitive agreement."
  • The partnership aims to continue delivering innovative AI tools to everyone, building on existing commitments to responsible development.

OpenAI's Restructuring Plans

A key component of this arrangement involves OpenAI's proposed restructuring. According to OpenAI chairman Bret Taylor, the nonprofit arm of OpenAI will maintain control over the for-profit private benefit corporation. The nonprofit is expected to hold a stake in the entity valued at over $100 billion—a significant shift designed to ensure oversight and public benefit within OpenAI's business structure.

Looking Ahead

While details of the revised terms have not been publicly disclosed, the new MOU signifies confidence in continued collaboration between two of the biggest forces in artificial intelligence. Updates regarding the finalized agreement and specifics of OpenAI's restructuring are anticipated as negotiations progress.

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