OpenAI has signed a memorandum of understanding with Microsoft to revise their partnership, allowing the firm’s commercial division to potentially transform into a public benefit corporation (PBC).
If regulators approve the transformation, the startup will have the opportunity to raise additional capital and go public.
Under the agreement, OpenAI’s nonprofit structure will continue to exist and maintain control over the company’s activities. It will receive a stake in the PBC valued at over $100 billion. Other terms of the deal remain undisclosed.
The document is not legally binding but outlines the intentions and expectations of the parties involved.
“We are actively working on finalising the contractual terms in the definitive agreement,” the companies added in a joint statement.
The memorandum appears to conclude months of negotiations between OpenAI and Microsoft regarding the transformation plans for the ChatGPT developer.
According to the current agreement, Microsoft, a key investor in OpenAI, receives priority access to technologies and serves as the primary cloud service provider for the startup.
However, since the initial investment in 2019, the business of the ChatGPT creator has grown significantly. Over the past year, the firm has made several deals that reduce its dependence on Microsoft.
According to The Wall Street Journal, the company has signed a $300 billion contract with Oracle for five years starting in 2027. OpenAI is also collaborating with the Japanese conglomerate SoftBank on the Stargate project.
Back in August, Sam Altman announced OpenAI’s work on a new GPT-6 model following the controversial release of GPT-5.