OpenAI Restructures with Microsoft Deal

OpenAI is nearing a deal with Microsoft that will see the AI company restructure into a for-profit entity. The non-profit arm of OpenAI is set to receive an equity stake worth over $100 billion, positioning it as a major philanthropic organisation. This restructuring allows OpenAI to raise capital through conventional means and potentially pursue an initial public offering.

The agreement ensures Microsoft maintains priority access to OpenAI's AI technology while supporting the company's growth. Microsoft has invested billions in OpenAI since 2019. The restructuring also allows OpenAI to pursue its own data centre projects and expand cloud partnerships.

Regulatory approval is still required for the deal, with Attorneys General in California and Delaware reviewing the new governance structure. The non-profit will retain overall decision-making authority, ensuring the company's mission to develop AI for the benefit of humanity remains a priority.