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OpenAI has entered into a memorandum of understanding with Microsoft to review its partnership, which could lead to the company’s transformation into a Public Benefit Corporation (PBC). If the transformation is approved by regulators, the startup will be able to raise additional capital and go public.
Under the terms of the agreement, the nonprofit OpenAI will continue to exist and maintain control over the company’s operations. It will receive a stake in PBC valued at more than $100 billion. Other terms of the agreement are not disclosed. The document has no legal value, but it records the intentions and expectations of the parties.
“We are actively working to finalize the contractual terms in a definitive agreement,” the companies added in a joint statement.
The memo appears to end months of negotiations between OpenAI and Microsoft. Under the current agreement, Microsoft, one of OpenAI’s key investors, will receive priority access to the technology and is the startup’s primary cloud services provider.
However, since its initial investment in 2019, the ChatGPT creator’s business has grown significantly. Over the past year, the company has struck a series of deals that have reduced its dependence on Microsoft.
According to The Wall Street Journal, the company has signed a $300 billion deal with Oracle for five years, starting in 2027. OpenAI is also collaborating with the Japanese conglomerate SoftBank on the Stargate project.
Recall that in August Sam Altman announced that OpenAI was working on a new model, GPT-6, following the controversial release of GPT-5.
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