Microsoft and OpenAI announced a non-binding memorandum enabling OpenAI to shift from its current nonprofit / “capped-profit” structure toward a more traditional for-profit entity.
Under the proposed restructuring, OpenAI’s nonprofit arm would retain authority and receive over $100 billion as part of the new governance model.
The broader deal is tied to a private valuation goal of roughly $500 billion. Microsoft has invested over $11 billion in OpenAI to date. The agreement still requires formal, definitive contracts and regulatory approvals in jurisdictions like California and Delaware.
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