OpenAI and Microsoft have signed a non-binding memorandum of understanding to revise their partnership, marking a new chapter in a relationship that has grown more complex as both companies chase bigger AI deployments and compute capacity.
The agreement, described by the two companies as the next phase of their partnership, aims to finalize contractual terms in a definitive agreement while reaffirming a shared commitment to safety.
OpenAI is seeking to restructure from a nonprofit to a for-profit entity, a move that would require Microsoft’s approval since it remains the largest investor with more than $13 billion committed since 2019. The shift comes as OpenAI has grown into a company valued at hundreds of billions of dollars, and the two firms continue to compete for corporate customers and compute resources.
Provisions under discussion reportedly would regulate Microsoft’s access to OpenAI technology after the advent of artificial general intelligence (AGI)—a milestone the companies economically define as AI systems capable of generating at least $100 billion in profit.
Earlier this year, OpenAI paused its plan to convert fully to a for-profit company amid pressure from former employees, regulators, and critics, including Elon Musk, who has challenged the move in court. The new MOU signals an effort to move forward with a revised structure while seeking necessary approvals from regulators and investors.
