{"id":4821,"date":"2025-09-12T16:35:47","date_gmt":"2025-09-12T16:35:47","guid":{"rendered":"https:\/\/cybersecurityinfocus.com\/?p=4821"},"modified":"2025-09-12T16:35:47","modified_gmt":"2025-09-12T16:35:47","slug":"openai-and-microsoft-seem-to-have-set-aside-their-differences-and-settled-on-a-deal","status":"publish","type":"post","link":"https:\/\/cybersecurityinfocus.com\/?p=4821","title":{"rendered":"OpenAI and Microsoft Seem to Have Set Aside Their Differences and Settled on a Deal"},"content":{"rendered":"<p>In what\u2019s called a \u201cnon-binding\u201d memo of understanding (MOU), <a href=\"https:\/\/openai.com\/index\/joint-statement-from-openai-and-microsoft\/\" target=\"_blank\" rel=\"noopener\">Microsoft and OpenAI\u00a0put out a joint statement<\/a> that will give its original nonprofit entity a new equity stake in its for-profit arm worth over $100 billion.<\/p>\n<h2>Breaking down the new structure<\/h2>\n<p>For years, OpenAI has operated a unique hybrid model: a for-profit Public Benefit Corporation (PBC) that builds products like ChatGPT, all controlled by a nonprofit parent organization focused on safety.<\/p>\n<p>Now, that nonprofit will be a confirmed major shareholder in the new PBC to the tune of $100 billion big ones.<\/p>\n<p>As the for-profit side makes more money, the nonprofit\u2019s philanthropic war chest will swell to what OpenAI calls \u201chistoric levels of community impact.\u201d<\/p>\n<h2>Solving AI\u2019s biggest dilemma<\/h2>\n<p>This restructuring aims to solve AI\u2019s biggest dilemma: how to fund the insanely expensive race to artificial intelligence without selling out the mission of bringing \u201copen\u201d AI to everyone.<\/p>\n<p>To show they\u2019re serious, the nonprofit immediately launched a $50M grant initiative. The first wave of funding will go to organizations working on:<\/p>\n<p>AI literacy and public understanding.<\/p>\n<p>Community-led innovation with AI.<\/p>\n<p>Expanding economic opportunity.<\/p>\n<h2>Sealing the deal?<\/h2>\n<p>Now, this doesn\u2019t \u201cseal the deal\u201d so to speak.\u00a0There\u2019s still the\u00a0<a href=\"https:\/\/techcrunch.com\/2025\/09\/08\/openai-denies-that-its-weighing-a-last-ditch-california-exit-amid-regulatory-pressure-over-its-restructuring\/\" target=\"_blank\" rel=\"noopener\">California and Delaware Attorneys General<\/a>\u00a0to worry about, who just sent OpenAI an\u00a0<a href=\"https:\/\/www.wsj.com\/podcasts\/tech-news-briefing\/tnb-tech-minute-openai-execs-rattled-by-campaigns-to-derail-for-profit-restructuring\/794c32d8-bd00-49fa-b751-cfe182c87af9\" target=\"_blank\" rel=\"noopener\">extremely serious warning<\/a>\u00a0over concerns of\u00a0<a href=\"https:\/\/abc7ny.com\/post\/chatgpt-allegedly-played-role-greenwich-connecticut-murder-suicide-mother-tech-exec-son\/17721940\/\" target=\"_blank\" rel=\"noopener\">multiple<\/a>\u00a0<a href=\"https:\/\/www.newsnationnow.com\/health\/woman-suicide-ai-therapist\/\" target=\"_blank\" rel=\"noopener\">cases<\/a>\u00a0of\u00a0<a href=\"https:\/\/www.nbcnews.com\/tech\/tech-news\/family-teenager-died-suicide-alleges-openais-chatgpt-blame-rcna226147\" target=\"_blank\" rel=\"noopener\">deaths<\/a> that have happened after people have used ChatGPT as a therapist. <a href=\"https:\/\/www.youtube.com\/watch?v=5KmpT-BoVf4&amp;t=1149s\" target=\"_blank\" rel=\"noopener\">Altman recently addressed this<\/a>\u00a0in a wide-ranging interview with Tucker Carlson, covering a lot of the nuances and difficulties of solving this issue.<\/p>\n<p>But it does seem to indicate Microsoft and OpenAI have settled enough of their differences (<a href=\"https:\/\/www.axios.com\/2025\/09\/11\/open-ai-microsoft-agreement-deal\" target=\"_blank\" rel=\"noopener\">Axios did a great job explaining that here<\/a>). You could almost have looked at the past two days of major AI news stories as a sort of tit-for-tat between the two:<\/p>\n<p>First, you had reports of <a href=\"https:\/\/www.techrepublic.com\/article\/news-microsoft-to-use-ai-from-anthropic\/\">Microsoft using Anthropic in Office \/ Copilot<\/a>.<\/p>\n<p>Then, you had reports of <a href=\"https:\/\/www.techrepublic.com\/article\/news-oracle-stock-soars-ai-cloud-contracts\/\">OpenAI\u2019s massive $300B<\/a>\u00a0deal with Oracle.<\/p>\n<p>We speculate just for fun here, but we can hear it now: \u201cYou want Anthropic in the Office? Fine, we want Oracle in the cloud!\u201d Who folded? Who can say\u2026 .<\/p>\n<p>That bodes well for OpenAI\u2019s other plans\u2026 its\u00a0<a href=\"https:\/\/www.theneuron.ai\/newsletter\/wtf-is-project-stargate\" target=\"_blank\" rel=\"noopener\">$500B Stargate data center project<\/a>, its\u00a0<a href=\"https:\/\/www.computerworld.com\/article\/4054928\/ai-bubble-watch-openai-to-burn-through-115b-by-2029.html\" target=\"_blank\" rel=\"noopener\">plans to burn $115B over five years<\/a>, and\u00a0<a href=\"https:\/\/www.reuters.com\/world\/europe\/openai-cfo-says-new-structure-opens-door-potential-future-ipo-2025-05-28\" target=\"_blank\" rel=\"noopener\">an eventual<\/a> and\u00a0<em>inevitable<\/em>\u00a0IPO to\u00a0<a href=\"https:\/\/www.theverge.com\/news\/776884\/openai-microsoft-mou\" target=\"_blank\" rel=\"noopener\">help pay for it all.<\/a><\/p>\n<p>Editor\u2019s note:<span> This content originally ran in the <a href=\"https:\/\/www.theneurondaily.com\/p\/new-template-august-2025-27f09420c87c3c05\">newsletter of our sister publication The Neuron<\/a>. To read more from The Neuron, <\/span><a href=\"https:\/\/www.theneuron.ai\/newsletter\"><span>sign up for its newsletter<\/span><\/a><span>.<\/span><\/p>\n<p>The post <a href=\"https:\/\/www.eweek.com\/news\/openai-microsoft-ai-deal\/\">OpenAI and Microsoft Seem to Have Set Aside Their Differences and Settled on a Deal<\/a> appeared first on <a href=\"https:\/\/www.eweek.com\/\">eWEEK<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>In what\u2019s called a \u201cnon-binding\u201d memo of understanding (MOU), Microsoft and OpenAI\u00a0put out a joint statement that will give its original nonprofit entity a new equity stake in its for-profit arm worth over $100 billion. Breaking down the new structure For years, OpenAI has operated a unique hybrid model: a for-profit Public Benefit Corporation (PBC) [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4821","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=\/wp\/v2\/posts\/4821"}],"collection":[{"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4821"}],"version-history":[{"count":0,"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=\/wp\/v2\/posts\/4821\/revisions"}],"wp:attachment":[{"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4821"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4821"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cybersecurityinfocus.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4821"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}