Microsoft and OpenAI to review partnership, non-profit organization OpenAI Inc. to remain a non-profit organization

Microsoft and OpenAI announced in a joint statement that they have signed a non-binding memorandum of understanding (MOU) to review the terms of their partnership. The two companies have been in discussions to realize an IPO for OpenAI, which has a complex organizational structure, and it appears they have reached a compromise. In conjunction with the joint statement, OpenAI Chairman Brett Taylor also revealed that OpenAI Inc., the non-profit organization that owns and manages its for-profit subsidiary, OpenAI Global, LLC, will remain a non-profit.

A joint statement from Microsoft and OpenAI - The Official Microsoft Blog

OpenAI and Microsoft have signed a non-binding memorandum of understanding (MOU) for the next phase of our partnership.

We are actively working to finalize contractual terms in a definitive agreement. Together, we remain focused on delivering the best AI tools for everyone,…

— OpenAI Newsroom (@OpenAINewsroom) September 11, 2025

OpenAI and Microsoft reach tentative deal to revise partnership
https://www.axios.com/2025/09/11/open-ai-microsoft-agreement-deal

A joint statement from Microsoft and OpenAI read, 'The two companies have signed a non-binding Memorandum of Understanding for the next phase of our partnership. We are currently in active discussions to finalize the terms of the agreement. We remain committed to providing the best AI tools for everyone, based on a shared commitment to safety.'

While there has been no mention of the specific details of the partnership, it appears that the two parties have held discussions regarding the nature and terms of their partnership if OpenAI raises funds through an IPO in the future. Microsoft reportedly stated in June 2025 that, 'At worst, we have a partnership agreement in place until 2030, so the discussions do not necessarily have to reach an agreement.'

Microsoft prepares to withdraw from negotiations with OpenAI - GIGAZINE

However, Microsoft continued to hold off on the deal and, while leaving some minor conditions in place, it was decided to broadly revise the partnership.

In conjunction with the joint statement, OpenAI Chairman Brett Taylor issued a statement clarifying that OpenAI Inc., the nonprofit organization that owns and manages its for-profit subsidiary, OpenAI Global, LLC, will remain a nonprofit organization into the future.

Statement on OpenAI's Nonprofit and PBC | OpenAI
https://openai.com/index/statement-on-openai-nonprofit-and-pbc/

OpenAI says nonprofit parent to own stake in company over $100 billion
https://www.cnbc.com/2025/09/11/openai-says-nonprofit-parent-to-own-stake-in-company-over-100-billion.html

Taylor said the partnership will make OpenAI Inc. 'one of the most well-funded charities in the world,' and that as PBC grows, OpenAI Inc.'s resources will grow, allowing it to 'have a historic level of impact in the community.'

Taylor also said that continuing the nonprofit ownership and management structure of PBC also reaffirms that OpenAI's core mission remains to 'ensure that artificial general intelligence (AGI) benefits all humanity.'

As a next step, Taylor announced that OpenAI Inc. is now accepting applications for a $50 million grant initiative aimed at supporting other nonprofits and community organizations in the areas of AI literacy, business opportunities, and community innovation.