Microsoft and OpenAI ‘Working to Finalize' Terms of Next Stage of Partnership

Partnership Agreement - Microsoft and OpenAI have signed a non-binding memorandum of understanding (MOU) to advance their partnership and are working on finalizing a definitive agreement [2] - The focus remains on delivering AI tools with a commitment to safety [2] Corporate Structure and Funding - OpenAI plans to evolve its structure, allowing the nonprofit to control and have an equity stake in a public benefit corporation (PBC) [2][3] - The new equity stake for OpenAI is projected to exceed $100 billion, positioning it as one of the most well-resourced philanthropic organizations globally [3] - This recapitalization aims to raise capital to fulfill OpenAI's mission and enhance the nonprofit's resources for community impact [3] Regulatory and Legal Considerations - OpenAI is collaborating with the attorneys general of California and Delaware on its corporate structure [4] - The decision to maintain nonprofit control over the for-profit arm was influenced by feedback from civic leaders and regulators [4] Investment and Revenue Sharing - Microsoft has invested billions in OpenAI and has an agreement to share revenue until 2030 [5] - OpenAI is reportedly reworking its multi-billion-dollar agreement with Microsoft, which is critical to its restructuring plans [5] Timeline and Challenges - OpenAI's corporate restructuring may be delayed until next year due to ongoing negotiations with Microsoft [6]