Overview

• OpenAI says its nonprofit parent will retain oversight and receive an equity stake valued at more than $100 billion.
• The companies signed a non-binding memorandum of understanding and say they are working to finalize a definitive agreement.
• The framework contemplates converting OpenAI’s commercial arm into a Public Benefit Corporation to unlock fundraising and allow a future IPO.
• California and Delaware attorneys general are reviewing the transition, and OpenAI is targeting completion this year to secure funding tied to the restructuring.
• Months of tense talks are being reset as Microsoft’s legacy preferred-access terms are revisited and OpenAI diversifies its compute with large commitments such as a reported $300 billion Oracle deal and the SoftBank-backed Stargate project.