Overview

• The companies announced a non-binding memorandum of understanding outlining the next phase of their relationship after months of negotiations.
• OpenAI says its nonprofit parent will retain oversight and receive an equity stake worth more than $100 billion.
• The framework is designed to permit conversion of OpenAI’s for‑profit arm into a public benefit corporation, potentially allowing conventional fundraising and a future listing.
• OpenAI and Microsoft say they are working with the California and Delaware Attorneys General on the proposed structure while they finalize definitive agreements.
• Microsoft remains a primary investor and cloud partner with more than $13 billion committed since 2019, as advocacy groups and litigants continue to contest the restructuring.