OpenAI Gets Microsoft’s Nod To Become Public Benefit Corp
OpenAI has reached a non-binding agreement with Microsoft that lets its for-profit arm convert into a public benefit corporation (PBC). The revised partnership clarifies governance and grants OpenAI more freedom to raise investment.
Nonprofit Control And Structure
Under the agreement, OpenAI’s nonprofit parent will retain control over the organization’s mission. The change aims to balance profit-making with public benefit goals.
Microsoft’s Position And Access
Microsoft, which is currently OpenAI’s largest investor, will continue to have access to OpenAI’s models and services under the revised structure. Though the agreement loosens exclusivity, Microsoft’s role remains significant.
Next Steps And Legal Review
The agreement is non-binding and must pass regulatory reviews, especially in states like California and Delaware. OpenAI is targeting a high private valuation as it shifts toward this new corporate form.
