In the new agreement, Microsoft gets a 27% stake in OpenAI's for-profit business, the OpenAI Group PBC, worth around $135 billion.

The shift establishes a nonprofit foundation overseeing a for-profit corporation, allowing the world’s most valuable startup to woo investors and secure funds.

The software giant is giving longtime backer Microsoft a 27% ownership stake worth about $135 billion as part of the restructuring plan.

Microsoft lifted a funding restriction on OpenAI that became a point of conflict after ChatGPT took off required more computing power.

OpenAI is laying the groundwork for an initial public offering that could value the company at up to around $1 trillion, three people familiar with the matter said, in what could be one of the biggest IPOs of all time and give CEO Sam Altman access to a much larger pool of capital to pull off his ambitious agenda.

Microsoft will still hold a stake of about $135 billion, or 27%, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit

The ChatGPT-maker is restructuring to command a for-profit business in addition to its nonprofit foundation amid changes to its partnership with Microsoft.

After receiving backlash, OpenAI CEO Sam Altman said that the company is not rolling back any restrictions related to "mental health."

OpenAI CEO Sam Altman says the company expects to develop an intern-level AI research assistant by 2026 and a full-fledged AI researcher by 2028. While current tools like Deep Research can gather information quickly, true human-level understanding remains the ultimate challenge.

The startup known for personalized celebrity videos is suing OpenAI for naming its virtual likeness feature "Cameo" in the Sora app.

By Deepa Seetharaman SAN FRANCISCO -Soon after ChatGPT was released to the public in late 2022, OpenAI CEO Sam Altman told employees they were on the cusp of a new technological revolution. OpenAI could soon become "the most important company in the history of Silicon Valley,