OpenAI Wins Microsoft’s Backing To Become A Public Benefit Corporation

OpenAI has secured Microsoft’s support to convert its for-profit arm into a Public Benefit Corporation, with the nonprofit parent retaining control and taking a stake worth more than $100 billion.

What Has Actually Happened?

OpenAI and Microsoft say they’ve signed a non-binding memorandum of understanding (MOU) for “the next phase” of their partnership. The agreement essentially lays the groundwork for OpenAI to recapitalise its for-profit division as a Delaware-based Public Benefit Corporation (PBC), with final terms still subject to approval by regulators in California and Delaware.