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

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

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

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 made its first investment in Sam Altman's OpenAI in 2019. It now holds a 27% in OpenAI's for-profit business.

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

Microsoft reported a $3.1 billion hit to its net income in the first quarter, a drop the company attributed to its massive investment in AI partner OpenAI. The reduction in profit, which Microsoft categorised in its earnings report as an “equity method investment,

Satya Nadella reveals that Bill Gates initial skepticism over $1 billion investment in OpenAI, citing its nonprofit structure & risks.

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

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,