OpenAI, Microsoft reach restructuring agreement over for-profit arm
The company signaled it would need the green light from California and Delaware policymakers as part of the restructuring plan.
Artificial intelligence company OpenAI has signed a non-binding memorandum of understanding with its largest investor, Microsoft, to restructure its business.
In a Thursday notice, OpenAI said the move, first proposed in May, would allow its for-profit arm to transition to a public benefit corporation, while the nonprofit would maintain control of the company.
Under the deal, the nonprofit arm will have a stake worth more than $100 billion in the public benefit corporation.
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