OpenAI's restructuring plans have not received the blessing of a major stakeholder: Microsoft Corp. Microsoft, which has invested $13.75 billion in the startup, remains the biggest holdout among investors as the ChatGPT maker tries to restructure. The software giant wants to ensure that any changes to OpenAI's structure adequately protect Microsoft's investment.
OpenAI recently announced that it's moving forward with an effort to restructure its for-profit division as a public benefit corporation, but changed its plans so that the overall business will instead remain under the control of its nonprofit. This decision followed discussions with civic leaders and the offices of the state attorneys general of California and Delaware.
Microsoft's approval will be key, as only OpenAI insiders, Microsoft, and other early investors currently have a direct say in approving the restructure. Microsoft also has a unique relationship with OpenAI, compared with other investors, because of its licensing and revenue-sharing agreements with the startup. Microsoft is currently negotiating those aspects of the contract, along with its equity stake and other issues.
In addition to winning over Microsoft and state officials, OpenAI is also battling a legal challenge over the restructure from billionaire Elon Musk, an OpenAI co-founder. Musk previously asked a judge to block OpenAI from becoming a for-profit business, but the judge rejected his request and allowed parts of his lawsuit to proceed.
