OpenAI, Microsoft sign key agreement in for-profit restructure
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The news: OpenAI and Microsoft have signed a non-binding memorandum of understanding to restructure the AI lab's for-profit entity.
The numbers: The nonprofit that controls OpenAI is expected to take an equity stake of about $100 billion in a restructured public benefit corporation, according to a blog post by OpenAI chair Bret Taylor.
The context: In a brief joint statement issued by OpenAI and its largest investor Microsoft, the companies’ said they are “working to finalise contractual terms in a definitive agreement”, but did not reveal further commercial details.
According to the Financial Times, people familiar with the talks expect the terms to be finalised by the end of the year.
“Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety,” the joint statement reads.
Taylor also flagged that the companies will "continue to work with the California and Delaware Attorneys General", who will need to approve the restructure.
The sources: OpenAI and Microsoft Joint Statement, OpenAI Blog, The Financial Times
