OpenAI, Microsoft reach non-binding agreement on potential IPO
OpenAI, the team behind ChatGPT, reached a non-binding agreement with Microsoft to shift its for-profit arm into a public benefit corporation—a key step toward going public.
This means OpenAI can raise new funds, while its nonprofit parent keeps control.
Microsoft currently has access to OpenAI's AI tech through 2030, and is negotiating for continued access beyond that date.
Deal lets OpenAI seek fresh investment while keeping nonprofit roots
The agreement, announced on September 11, 2025 as a non-binding memorandum of understanding, lets OpenAI seek fresh investment while keeping its nonprofit roots strong.
Microsoft—already in for over $13 billion since 2019—might trim its stake but is negotiating for continued access to OpenAI's AI models beyond 2030.
OpenAI's unique structure and mission
OpenAI is all about developing ethical AI and is famous for tools like ChatGPT.
It runs with a unique setup: a nonprofit at the top and a for-profit arm that builds and sells AI products (often via Microsoft's Azure cloud).
This structure helps them push innovation while focusing on real-world impact.
Potential IPO is not final yet
This move follows months of talks about equity, cloud rights, and IP—plus some legal drama from Elon Musk and competition from other AI players like Anthropic.
The IPO isn't final yet; contracts need signing and regulators have to sign off first.