The deal removes a major constraint on raising capital for OpenAI, which was founded as a nonprofit AI safety group.

Microsoft and OpenAI announced a restructuring deal on Tuesday that frees the ChatGPT maker to move away from its nonprofit roots and likely go public so it can finance CEO Sam Altman's ambitious plans to develop data centers and cutting-edge technology.

Since 2019, Microsoft and OpenAI have shared a vision to advance artificial intelligence responsibly and make its benefits broadly accessible. What began as an investment in a research organization has grown into one of the most successful partnerships in our industry.

Microsoft and OpenAI unveil a deal extending IP rights, adding independent AGI verification, and giving both sides more freedom while maintaining Azure ties.

Microsoft and OpenAI announced the long-awaited details of their new partnership agreement Tuesday morning — with concessions on both sides that keep the companies aligned but not in lockstep as they move into their next phases of AI development.

Microsoft lifted a funding restriction on OpenAI that became a point of conflict after ChatGPT took off required more computing power.

The nonprofit arm, now called the OpenAI Foundation, will have a $130 billion stake in the for-profit enterprise.

Microsoft CEO Satya Nadella faced pushback even from the company’s cofounder and original CEO Bill Gates, he recalled during an interview on tech-focused YouTube channel TPBN. “Remember this was a nonprofit, and I think Bill [Gates] even said, ‘Yeah, you’re going to burn this billion dollars,'” Nadella said.

The memos mostly rehash what the company reports publicly, but often they show what developments the executive deems most important.