
OpenAI and Microsoft Reach Nonbinding Agreement on For‑Profit Transition
OpenAI announced a nonbinding memorandum of understanding with Microsoft that would allow the AI startup to convert its for‑profit arm into a public benefit corporation. The deal keeps OpenAI’s nonprofit board in control while granting Microsoft preferred access to the technology and primary cloud services. The agreement follows months of negotiation, legal disputes, and competing partnership offers, including a cloud contract with Oracle and a data‑center collaboration with SoftBank. Regulators in California and Delaware must still approve the transition, and the arrangement remains subject to a definitive contract.







