OpenAI announced it has signed a nonbinding memorandum of understanding with Microsoft, its largest investor, to transition its for-profit business into a public benefit corporation (PBC). Under the proposed structure, OpenAI’s nonprofit board, chaired by Bret Taylor, would retain governance control while holding a stake in the new entity valued at more than $100 billion.
The agreement, which still requires regulatory approval in California and Delaware, could pave the way for OpenAI to raise new capital and eventually pursue a public listing. The move follows months of negotiations with Microsoft, which currently has preferred access to OpenAI’s models and cloud services. The restructuring underscores OpenAI’s effort to balance growth, governance, and independence in the evolving AI landscape.
