In a major development that could reshape the future of artificial intelligence, OpenAI—the creator of ChatGPT—and Microsoft have reached a new, non-binding agreement to revise their existing partnership. This updated collaboration is designed to allow OpenAI more structural flexibility while continuing to strengthen Microsoft’s role as a key technology partner.
One of the most significant changes under this revised arrangement is OpenAI’s plan to restructure its for-profit division into a public benefit corporation (PBC). This shift is aimed at ensuring that the company’s long-term goals are not solely driven by profit, but also by broader social impact. Importantly, the control of the company will still remain with the original non-profit organization. According to OpenAI board chairman Brett Taylor, the non-profit’s stake in the company could exceed $100 billion (around ₹8.8 lakh crore) after the reorganization.
The partnership brings mutual benefits. Microsoft will retain exclusive access to OpenAI’s cutting-edge technology, ensuring it remains at the forefront of the AI race. For OpenAI, the new arrangement offers more operational independence and the ability to collaborate freely with other cloud service providers—something that can significantly boost its global reach and expansion efforts. Additionally, this new corporate structure is expected to make it easier for OpenAI to attract new investments and funding, particularly for supporting emerging AI startups.
The initial phase of this strategic change is still subject to regulatory approval, and there is currently no clear timeline for when that will be granted. However, both companies are optimistic about the direction and potential of this move.
OpenAI was originally established as a non-profit organization, but later transitioned to a “limited-profit” model to attract capital while maintaining its core mission. With this latest shift toward a public benefit corporation, OpenAI aims to strike a balance between innovation, ethical responsibility, and financial sustainability.
As the global race for AI dominance intensifies, this strengthened collaboration between OpenAI and Microsoft could set a new standard for how major tech companies align profit with purpose.
