OpenAI announced it has reached a preliminary, non-binding agreement with Microsoft regarding a revised partnership that paves the way for the conversion of OpenAI's for-profit unit into a Public Benefit Corporation (PBC).
If approved by state regulators, the move would allow OpenAI to raise new capital from investors and open up the possibility of becoming a public company.
OpenAI Board Chairman Bret Taylor said that the OpenAI nonprofit foundation will continue to control the company's operations and will acquire a stake in PBC at a valuation of more than US$100 billion.
In a joint statement, OpenAI and Microsoft emphasized that the signed document is still a memorandum of understanding (MoU) and does not have legal force, but reflects both parties' intention to continue the partnership.
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