OpenAI reaches new agreement with Microsoft to change its corporate structure

KEY TAKEAWAYS:

OpenAI ‘s nonprofit will receive a $100 billion equity stake in its for-profit corporation.

The partnership with Microsoft continues, though some contractual terms remain unresolved.

Regulators in California and Delaware are investigating OpenAI’s corporate restructuring and AI safety commitments.

Elon Musk ‘s lawsuit challenges the move, citing concerns about the nonprofit losing control and betraying AI safety promises.

OpenAI has reached a new tentative agreement with Microsoft and said its nonprofit, which technically controls its business, will now be given a $100 billion equity stake in its for-profit corporation.

The maker of ChatGPT said it had reached a new nonbinding agreement with Microsoft, its longtime partner, “for the next phase of our partnership.