OpenAI and Microsoft Sign MOU Toward IPO

As OpenAI works to reorganize its governance and move toward a public listing, it and Microsoft announced they’ve signed a non‑binding memorandum of understanding (MOU) to define the “next phase” of their partnership. The Verge reports the agreement is intended to be followed by a definitive contract, and could clear a key obstacle for an eventual OpenAI IPO. OpenAI — recently valued at about $500 billion — has received roughly $13 billion from Microsoft since 2019 and shares revenue from ChatGPT and its API with Microsoft, making the relationship commercially and legally complex. At the same time, Microsoft is accelerating investments in its own models: in a company town hall CEO Satya Nadella and AI chief Mustafa Suleyman said the company will commit to “significant investments” to build frontier models in‑house while remaining pragmatic about using other models where appropriate. OpenAI disclosed one specific detail: its nonprofit parent will continue to hold authority over the for‑profit arm and retain an equity stake reportedly worth more than $100 billion. That restructuring has triggered pushback from other philanthropies and nonprofits and prompted investigations by the attorneys general of California and Delaware as OpenAI works to address regulatory and governance concerns. View Full Story