Microsoft and OpenAI have agreed to restructure their cooperation relationship.

Microsoft and OpenAI have agreed to restructure their partnership. The non-binding agreement announced on Thursday will allow the maker of ChatGPT to advance its transition to a for-profit company. Specific terms have not been fully disclosed, with both parties stating that they are still finalizing the agreement. Microsoft invested $1 billion in OpenAI in 2019, followed by an additional $10 billion investment in 2023. According to the original agreement, Microsoft had the exclusive right to sell OpenAI tools through its Azure cloud computing platform and was the exclusive provider of computing power for the AI pioneer. However, OpenAI wants to adopt a more traditional corporate structure and seek the freedom to collaborate with other cloud service providers. This new deal could still face regulatory obstacles and requires approval from the attorneys general of California and Delaware. OpenAI hopes to complete its transition to a for-profit entity by the end of the year, or else face the risk of losing out on time-sensitive financing worth billions of dollars.