“We continue to believe that AI will be the defining technology of our time,” a Microsoft spokesperson said. “Our collaboration with OpenAI remains strong, but with more flexibility to explore broader possibilities.”
OpenAI’s Public Benefit Move
In addition to the contract revisions, OpenAI is reportedly converting into a public benefit corporation, a structural change that allows the company to balance profit motives with societal good.
This shift could help enable a future IPO, making it easier to raise the massive capital needed for the Stargate initiative.
According to the Wall Street Journal, this change allows OpenAI to “better pursue its mission while attracting the investment needed to build and run state-of-the-art AI systems.”
“The public benefit corporation status allows us to align our long-term goals with those of society at large,” an OpenAI executive reportedly said.
IPO on the Horizon?
While OpenAI has not officially confirmed plans to go public, sources cited by MSN suggest that renegotiating terms with Microsoft clears the way for a future IPO. The company’s nonprofit origins previously complicated any path toward a traditional public offering.
