Microsoft and OpenAI Forge Non-Binding Pact for Restructuring

Microsoft and OpenAI have reached an agreement to reshape their partnership, signing a non-binding deal that will allow OpenAI to transition towards becoming a for-profit entity. While specifics of the new commercial arrangements remain undisclosed, both organizations have expressed ongoing efforts to finalize the terms of a definitive contract. This agreement follows a memo from Brett Taylor, chairman of OpenAI’s nonprofit board, which details OpenAI’s existing parent company holding $100 billion in shares of a public benefit corporation, granting it control over decision-making for the organization.