OpenAI and Microsoft have signed an agreement on a new governance structure

OpenAI and Microsoft have signed a non-binding memorandum of understanding aimed at laying the groundwork for restructuring OpenAI and strengthening cooperation between the companies.

The goal of the changes is to transform OpenAI into a commercial organization. Microsoft had previously invested in OpenAI: first $1 billion in 2019, and then another $10 billion in early 2023. Under previous agreements, Microsoft had exclusive rights to sell OpenAI tools through Azure and priority access to its technologies.

One of the key changes will be reducing OpenAI's dependence on Microsoft as its sole provider of computing power. Currently, OpenAI intends to expand partnerships with other cloud providers and independently develop its infrastructure, as well as sign contracts with companies such as Oracle and Google.

Despite commercialization, OpenAI's non-profit structure will remain and will control the commercial division, which will operate as a public benefit corporation — an organization focused not only on profit but also on social mission. According to OpenAI Board Chair Bret Taylor, the non-profit portion will receive a stake in the PBC worth more than $100 billion, making it one of the best-funded non-profit organizations in the world.

Source: Reuters