OpenAI And Microsoft Reach Restructuring Agreement Over For-Profit Arm

Artificial intelligence company OpenAI has signed a non-binding memorandum of understanding with its largest investor, Microsoft, to restructure its business.

In a Thursday notice, OpenAI said the move, first proposed in May, would allow its for-profit arm to transition to a public benefit corporation, while the nonprofit would maintain control of the company.

Under the deal, the nonprofit arm will have a stake worth more than $100 billion in the public benefit corporation.

“OpenAI was founded as a nonprofit, is today a nonprofit that oversees and controls the for-profit, and going forward will remain a nonprofit that oversees and controls the for-profit,” said CEO Sam Altman in May. “That will not change.”