OpenAI Partners with Microsoft in Major Financial Restructure
OpenAI has announced a tentative agreement with Microsoft, which invested $13 billion for a 49% share of OpenAI’s future profits. Both companies have signed a nonbinding memorandum to restructure their partnership, with plans for a formal contract soon. OpenAI will offer an equity stake exceeding 20% of its reorganized company, valued at a minimum of $100 billion to the nonprofit overseeing it. This transition is crucial as OpenAI shifts from a nonprofit model to a Public Benefit Corporation (PBC), allowing potential stock market engagement for capital raising. The restructured nonprofit is set to become a major philanthropic entity, as noted by board chair Bret Taylor. Furthermore, OpenAI has launched a $50 million grant initiative supporting AI literacy, community innovation, and economic opportunities, affirming its commitment to social impact amid its evolving business strategy. This move positions OpenAI at the intersection of technology and responsible philanthropy.
