OpenAI’s existing nonprofit will retain control over a newly established public benefit corporation, securing an equity stake valued at $100 billion or more, under a preliminary agreement with Microsoft, Bloomberg reported.

The arrangement marks a key step in the AI startup’s planned transition from nonprofit status to a more traditional corporate structure.

Bret Taylor, OpenAI chairman, said that the nonprofit will continue to guide the company’s direction. “OpenAI started as a nonprofit, remains one today, and will continue to be one — with the nonprofit holding the authority that guides our future,” he said.

The 100 billion US dollars stake represents roughly 20 percent of OpenAI’s valuation and is considered a floor, with the potential to increase.

Microsoft, which has invested heavily in OpenAI, saw its shares rise about 2.4 percent in after-hours trading following the announcement. The two companies have been negotiating for months over the new structure, which would allow Microsoft to integrate OpenAI’s AI tools into its products in exchange for financial backing.

In a joint statement, Microsoft and OpenAI said they had signed a “non-binding memorandum of understanding for the next phase of our partnership” and are working to finalise a definitive agreement. “Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety,” they said.