Overview

• OpenAI and Microsoft signed a non-binding memorandum of understanding outlining the next phase of their partnership and said they are working to finalize a definitive agreement.
• OpenAI said its nonprofit parent will continue to hold authority over the company and will own an equity stake valued at more than $100 billion.
• The restructuring positions OpenAI’s for-profit operations to convert into a public-benefit corporation, which could enable future capital raises and a potential listing if regulators approve.
• OpenAI said it is coordinating with the California and Delaware attorneys general on the new structure, as legal challenges including a lawsuit from Elon Musk continue.
• The nonprofit opened applications for a $50 million grant initiative focused on AI literacy, economic opportunity and community innovation.