OpenAI has announced a tentative $100 billion equity agreement with Microsoft, reshaping its corporate structure while remaining under nonprofit control. This nonbinding agreement marks the next phase of their longstanding partnership, with OpenAI’s nonprofit board governing the for-profit entity that develops AI technologies like ChatGPT. This restructuring has attracted scrutiny from regulators, including California Attorney General Rob Bonta, who is investigating OpenAI’s governance changes amid concerns about safety and the mission to ensure AI benefits humanity. Additionally, a lawsuit from co-founder Elon Musk aims to prevent the nonprofit from losing control over its mission. Microsoft, having invested significantly in OpenAI since 2019, uses its technology to enhance its own AI products, though discussions about further terms are ongoing. As the companies navigate these complexities, the future of AI governance and safety remains a critical focus. For ongoing updates, visit AP News.
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