Artificial intelligence company OpenAI has restructured its business by signing a non-binding memorandum of understanding with Microsoft, its largest investor. The move will allow its for-profit arm to transition to a public benefit corporation, with the nonprofit maintaining control. The nonprofit arm will have a stake worth over $100 billion in the new structure. OpenAI’s physical headquarters is in San Francisco, but it is legally incorporated in Delaware.

Founded in 2015, OpenAI was launched as a nonprofit research lab focusing on artificial intelligence. The company faced criticism in 2023 when CEO Sam Altman was briefly ousted for allegedly lacking transparency in communications. Altman was reinstated after pushback from staff and the public. OpenAI recently raised $8.3 billion, reaching a $300 billion valuation, with expected total revenue of $12.7 billion in 2025.

Read more at Cointelegraph: OpenAI And Microsoft Reach Restructuring Agreement Over For-Profit Arm