OpenAI & Microsoft sign MoU to define next stage of AI partnership

OpenAI and Microsoft have signed a non-binding memorandum of understanding (MoU) to define the next stage of their partnership, the two companies said in a joint statement. They added that negotiations are ongoing to finalise contractual terms, while reiterating that their work together will continue to focus on AI development with an emphasis on safety.

As part of its restructuring, OpenAI, in a blog post, said, under the nonbinding agreement with Microsoft, the company's non-profit would continue to exist and retain control over the startup’s operations, and its non-profit arm would retain control of its Public Benefit Corporation (PBC). The non-profit, which was established at OpenAI’s founding and continues to exist, would both guide decision-making and share in the success of the PBC.

According to the company, the nonprofit’s equity stake in the PBC could exceed $100 billion, which would make it one of the largest philanthropic entities globally. This would provide resources to pursue its stated mission of ensuring artificial general intelligence (AGI) benefits all of humanity.

The company also noted that its governance structure requires safety considerations to guide decision-making. It is currently engaging with the Attorneys General of California and Delaware in relation to the new framework.

The joint statement did not provide a timeline for when a definitive agreement between OpenAI and Microsoft would be finalised.