OpenAI has signed a non-binding memorandum of understanding with Microsoft to restructure its business, allowing its for-profit arm to transition to a public benefit corporation while the nonprofit continues to maintain control. This restructuring was initially proposed in May and aims to solidify an arrangement where the nonprofit arm holds a stake exceeding $100 billion in the public benefit corporation. CEO Sam Altman emphasized that OpenAI, originally founded in 2015 as a nonprofit, will remain a nonprofit entity overseeing the for-profit division. The company is engaging with California and Delaware policymakers as part of the restructuring process. Founded by notable figures like Elon Musk and Altman, OpenAI developed ChatGPT and has faced scrutiny around leadership and transparency. The restructuring follows reports of OpenAI’s anticipated valuation reaching $300 billion and projected revenue of $12.7 billion in 2025.

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