Microsoft and OpenAI reached a deal to allow the ChatGPT maker to restructure itself into a public benefit corporation , valuing OpenAI at $500 billion and giving it more freedom in its business operations.

The deal removes a major constraint on raising capital for OpenAI that has existed since 2019, when it signed a deal with Microsoft that gave the tech giant rights over much of OpenAI’s work in exchange for costly cloud computing services needed to carry it out. As its ChatGPT service exploded in popularity, those limitations became a notable source of tension between the two companies .

CEO Sam Altman will not get equity in the restructured company, an OpenAI spokesperson said, in a reversal from discussions last year that he would receive equity. The company has no plans to fo

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