Microsoft Chairman and Chief Executive Officer Satya Nadella (L), speaks with OpenAI Chief Executive Officer Sam Altman, who joined by video during the Microsoft Build 2025, conference in Seattle, Washington on May 19, 2025.
Jason Redmond | AFP | Getty Images
OpenAI on Thursday said its nonprofit parent will continue to have oversight over the company and will own an equity stake of more than $100 billion.
The artificial intelligence startup, recently valued at $500 billion, said this structure will make the nonprofit “one of the most well-resourced philanthropic organizations in the world,” and will allow the company to continue to raise capital.
OpenAI also announced it has signed a non-binding memorandum of understanding with Microsoft, which outlines the next phase of their partnership. Microsoft has invested over $13 billion in OpenAI, backing the company as early as 2019, three years before the launch of of the chatbot ChatGPT.
“We are actively working to finalize contractual terms in a definitive agreement,” OpenAI said in a joint statement with Microsoft, its principal backer and key cloud partner. “Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety.”
This is breaking news. Check back for updates.
