OpenAI has said it plans to give its non-profit parent an equity stake worth at least $100bn in the ChatGPT maker, as it announced progress in talks with Microsoft to overhaul its structure and unlock an eventual public listing.
The two companies on Thursday said they had signed a “nonbinding memorandum of understanding”, which marks a significant step forward in the start-up’s effort to convert to a more investor-friendly, for-profit structure.
Microsoft, an early backer of the artificial intelligence start-up, has for months been locked in contentious negotiations with OpenAI covering the tech group’s access to the start-up’s technology, intellectual property and revenue.
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