The Openai Agreement with Microsoft could pave the way for a potential IPO

The two companies have signed a non -binding memorandum describing “the next phase” of their relationship, with a final agreement expected in the coming months. The announcement was the light on the details; The small financial characters were not disclosed and the companies declared that they still finalized the contractual conditions.

“Together, we remain focused on the delivery of the best AI tools for everyone, based on our common security commitment,” said companies in a statement on Thursday.

Nevertheless, the agreement seems to approach the structural and competitive friction which complicated the relationship between OpenAi and its greatest investor, paving the way for the startup of $ 500 billion to convert its for -profit arm into a public service company (PBC).

Openai’s business structure is unusual. Originally founded as a non -profit organization, he created a for -profit arm in 2019, which enabled large investments such as Microsoft. The company has tried to restructure its entity focused on profit in a more conventional business model to enable it to raise additional capital, while leaving the non -profit parent in control of the startup operations. A conversion into a more traditional structure, such as a company of public benefits, could allow the company to combine its public mission objectives with the generation of profits and possibly to become public in the future.

CEO Sam Altman is well aware that speculators want to see Openai floating on the stock market. He said to CNBC last month that he had “very conflicting” feelings on a potential IPO, explaining: “Whenever we made public, if we were making public, I think there will be a huge advantage in front of the company, but I understand why people would love us to be public or more little.

Microsoft has been an early investor in Openai and has cumulatively invested at least $ 13 billion in the AI ​​startup since 2019. In exchange, the technology giant has received a share of income from Openai products, including Chatgpt, and has integrated company technology into Microsoft 365 products. However, the partnership would have been tense as the two companies evolve their ambitions of AI.

Microsoft now has Openai as a competitor and has increased his dependence on his own AI models. Openai has also signed a cloud agreement of several billion dollars with Oracle to ensure that it has sufficient calculation capacity, potentially attenuating its dependence on Microsoft cloud assistance.

The news of an agreement was well received by investors, Microsoft’s shares increasing by 2.4% in the event of negotiation after opening hours after the announcement.

When asked for more details on the agreement, the representatives of Microsoft and Openai referred Fortune to the joint declaration of companies.

Hedge regulations

However, the transition must still be authorized by state regulators.

California and Delaware general prosecutors are already examining the restructuring of Openai. The regulators wonder if Openai has moved away from its original public mission in favor of commercial growth – recent suicides linked to Chatgpt have also complicated the problem. Investigations could lead to major prosecution or settlement requests as conditions to move forward. The co -founder of Openai, Elon Musk, also fought the restructuring plans and filed a complaint accusing the startup of fraud investors.

In a blog article also shared on Thursday, the chairman of the Board of Directors of Openai, Bret Taylor, reaffirmed that the non -profit organization of Openai would continue to control the operations of the STARTUP and would obtain an equity participation in the new CBC worth more than 100 billion dollars. He said that it would make the non -profit organization “one of the most in -depth philanthropic organizations in the world”.

Taylor wrote in the post: “Our PBC Charter and Governance will establish that security decisions must always be guided by this mission. We continue to work with California and Delaware general prosecutors as an important element in strengthening our approach, and we remain committed to learning and acting with urgency to guarantee that our tools are useful and safe for everyone, while advancing security as an industrial help. ”

He also declared that as part of this next phase, the company’s non -profit organization had started to consider requests for the first wave of a subsidy initiative of $ 50 million which aims to support non -profit and community organizations in the fields of literacy, community innovation and economic opportunities.

Global Forum fortune returns on October 26 to 27, 2025 in Riyadh. CEOs and world leaders will meet for a dynamic event only invitation that shapes the future of business. Request an invitation.