""OpenAI announced Thursday that it reached a non-binding agreement with Microsoft, its largest investor, to convert its for-profit arm into a public benefit corporation (PBC). The transition, should it be cleared by state regulators, could allow OpenAI to raise additional capital from investors and, eventually, become a public company. In a blog post, OpenAI's Board Chairman Bret Taylor said that OpenAI's non-profit would continue to exist and retain control over the startup's operations.""
""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. MOUs are not legally binding, but aim to document each party's expectations and intent. "We are actively working to finalize contractual terms in a definitive agreement," the joint statement added. The development seems to mark an end to months of negotiations between OpenAI and Microsoft over the ChatGPT-maker's transition plans.""
OpenAI reached a non-binding agreement with Microsoft to convert its for-profit arm into a public benefit corporation (PBC). The conversion could allow OpenAI to raise additional capital and potentially go public if state regulators approve the plan. OpenAI's nonprofit would continue to exist and retain operational control while receiving a stake in the PBC valued at upwards of $100 billion under the agreement. Microsoft and OpenAI signed a memorandum of understanding and are working to finalize a definitive agreement. The companies continue to work with California and Delaware attorneys general, and negotiations have been tense at times.
Read at TechCrunch
Unable to calculate read time
Collection
[
|
...
]