OpenAI and Microsoft, its largest investor, have reached an initial consensus on a cooperative framework, which may pave the way for a shift from a non-profit to a more traditional one.
In his statement on Thursday, Board Chairman Bret Taylor indicated that the existing OpenAI non-profit entity would continue to control a new pro bono company and hold no less than $100 billion in equity in that company. He claims that this equity will make the non-profit entity “one of the most well-funded charitable organizations in the world”.
According to Taylor, “OpenAI, which started with a non-profit organization, is still, and will continue to be, a non-profit organization — a non-profit entity that has the power to lead our future decisions.”
An anonymous source of information required to disclose the 100 billion United States dollars interest is a “low limit” and may be increased in the future, which is equivalent to approximately 20 per cent of OpenAI’s valuation.
In a joint statement on Thursday, OpenAI and Microsoft indicated that a “non-binding memorandum of understanding” had been signed for the next phase of their cooperation and that a final and contractually binding agreement was being actively pursued. The post-micro Disk stock price rose by about 2.4 per cent.