OpenAI announced on Thursday that it has reached a non-binding agreement with Microsoft to restructure its for-profit entity into a Public Benefit Corporation (PBC). The move could enhance the AI leader’s ability to raise capital and potentially set the stage for a future public listing.
In a blog post, OpenAI Board Chairman Bret Taylor confirmed that the nonprofit parent will retain control of the company’s operations and receive a stake in the new PBC valued at over $100 billion. The agreement, still subject to regulatory approval in California and Delaware, aims to balance capital-raising flexibility with mission-driven governance.
“Microsoft and OpenAI have signed a non-binding memorandum of understanding (MOU) for the next phase of our partnership,” the companies said in a joint statement. “We are actively working to finalise contractual terms in a definitive agreement.”
Microsoft remains OpenAI’s primary cloud partner, though OpenAI has recently committed to a $300 billion cloud deal with Oracle beginning in 2027 and partnered with SoftBank on the Stargate data centre project.
The restructuring talks come amid heightened industry attention. Earlier this year, Elon Musk submitted a $97 billion takeover bid for OpenAI, which was rejected. Critics have warned that the shift to a PBC could dilute OpenAI’s mission to ensure artificial general intelligence benefits humanity. OpenAI has defended the transition, asserting that nonprofit oversight will remain intact.
If the deal proceeds, the nonprofit’s stake will exceed Musk’s bid valuation, potentially reshaping OpenAI’s financial and strategic trajectory in the AI sector.
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