
OpenAI and Microsoft have entered into a non-binding memorandum of understanding (MOU), marking the beginning of a new stage in their partnership, as OpenAI moves closer to restructuring its business and planning for a possible future public listing.
In a joint statement released soon after their announcement on Thursday, the companies confirmed they are currently negotiating the terms of a definitive agreement. “We are both focused on our commitment to safety and to providing the best AI tools for everyone,” the statement added.
OpenAI and Microsoft's partnership
Since 2019, Microsoft has invested over $13 billion in OpenAI and shares in the revenue from ChatGPT and API. However, in the last few months, the relationship has become more complicated; for example, Microsoft sees OpenAI both as a partner and competitor. OpenAI is now allowed to use other cloud providers while simultaneously expanding its own AI models.
OpenAI likewise clarified its not-for-profit parent will still control the for-profit arm, with an equity stake now worth over $100 billion.
Moreover, the startup is also facing scrutiny from the attorneys general of the states of California and Delaware due to its restructuring plan following pushback from several nonprofits and foundations.
OpenAI said it is cooperating with regulators: “We remain committed to learning and acting with urgency to ensure our tools are helpful and safe for everyone, while advancing safety as an industry-wide priority.
During a town hall at Microsoft on Thursday, CEO Satya Nadella and AI head Mustafa Suleyman reiterated their commitment to “significant investments” to build in-house models.