Tech
OpenAI reaches new agreement with Microsoft to change its corporate structure
OpenAI has reached a new tentative agreement with Microsoft and said its nonprofit, which technically controls its business, will now be given a $100 billion equity stake in its for-profit corporation.
The maker of ChatGPT said it had reached a new nonbinding agreement with Microsoft, its longtime partner, “for the next phase of our partnership.”
The announcements on Thursday include a few details about these new arrangements. OpenAI’s proposed changes to its corporate structure have drawn the scrutiny of regulators, competitors and advocates concerned about the impacts of artificial intelligence.
OpenAI was founded as a nonprofit in 2015 and its nonprofit board has continued to control the for-profit subsidiary that now develops and sells its AI products. It’s not clear whether the $100 billion equity stake the nonprofit will get as part of this announcement represents a controlling stake in the business.
California Attorney General Rob Bonta said last week that his office was investigating OpenAI’s proposed restructuring of its finances and governance. His office said they could not comment on the new announcements but said they are “committed to protecting charitable assets for their intended purpose.”
Bonta and Delaware Attorney General Kathy Jennings also sent the company a letter expressing concerns about the safety of ChatGPT after meeting with OpenAI’s legal team earlier last week in Delaware, where OpenAI is incorporated.
“Together, we are particularly concerned with ensuring that the stated safety mission of OpenAI as a non-profit remains front and center,” Bonta said in a statement last week.
Microsoft invested its first $1 billion in OpenAI in 2019 and the two companies later formed an agreement that made Microsoft the exclusive provider of the computing power needed to build OpenAI’s technology. In turn, Microsoft heavily used the technology behind ChatGPT to enhance its own AI products.
The two companies announced on Jan. 21 that they were altering that agreement, enabling the smaller company to build its own computing capacity, “primarily for research and training of models.” That coincided with OpenAI’s announcements of a partnership with Oracle to build a massive new data center in Abilene, Texas.
But other parts of its agreements with Microsoft remained up in the air as the two companies appeared to veer further apart. Their Thursday joint statement said they were still “actively working to finalize contractual terms in a definitive agreement.” Both companies declined further comment.
OpenAI had given its nonprofit board of directors—whose members now include a former U.S. Treasury secretary—the responsibility of deciding when its AI systems have reached the point at which they “outperform humans at most economically valuable work,” a concept known as artificial general intelligence, or AGI.
Such an achievement, per its earlier agreements, would cut off Microsoft from the rights to commercialize such a system, since the terms “only apply to pre-AGI technology.”
OpenAI’s corporate structure and nonprofit mission are also the subject of a lawsuit brought by Elon Musk, who helped found the nonprofit research lab and provided initial funding. Musk’s suit seeks to stop OpenAI from taking control of the company away from its nonprofit and alleges it has betrayed its promise to develop AI for the benefit of humanity.
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Tech
Greg Brockman Officially Takes Control of OpenAI’s Products in Latest Shakeup
OpenAI told staff on Friday that it would reorganize the company as part of an ongoing effort to unify its product offerings, WIRED has learned. OpenAI cofounder and president Greg Brockman will now lead the company’s product strategy, in addition to his work on AI infrastructure, OpenAI confirms to WIRED. Brockman was previously assigned to oversee OpenAI products on an interim basis while CEO of AGI deployment, Fidji Simo, was on medical leave; the change is now official.
“We’re consolidating our product efforts to execute with maximum focus toward the agentic future, to win across both consumer and enterprise,” Brockman said in a memo to staff seen by WIRED. Brockman added that OpenAI’s products are naturally converging, and that the company has decided to merge ChatGPT and Codex into one unified experience.
OpenAI says it’s folding ChatGPT, its AI coding agent Codex, and its developer-facing API into one core product team. The company says that Codex is increasingly powering its consumer and enterprise offerings, which are gaining the ability to perform digital tasks autonomously on behalf of users.
Two other OpenAI leaders are also taking on larger roles at the company as part of the changes. OpenAI’s head of Codex, Thibault Sottiaux, has been tapped to lead the core product and platform across consumer, enterprise, and developer surfaces. Sottiaux was a key leader in building Codex into one of the company’s fastest-growing products of all time. OpenAI’s longtime head of ChatGPT, Nick Turley, is moving to a new role at the company that aims to revamp enterprise products. OpenAI says Turley will continue his work on ChatGPT, which he has helped grow to more than 900 million weekly active users since he took over in 2022.
The changes are the latest shakeup for OpenAI as leadership aims to refocus the company on a few key product areas, including ChatGPT, Codex, and its forthcoming “everything app.” Last month, OpenAI announced many executive changes, including that CEO of AGI dDeployment, Fidji Simo, was taking a medical leave to focus on her health. OpenAI previously said Brockman would oversee product strategy in her absence. The company tells WIRED that Simo remains on medical leave, and worked directly with Brockman on these organizational changes and product strategy.
In the last year, OpenAI has faced increasing pressure from competitors, including Anthropic in coding domains and Google in consumer chatbots. OpenAI leaders are hoping to simplify product offerings ahead of its plan to file for an IPO, which could happen later this year.
Other OpenAI executives left the company entirely last month, including the head of its AI workspace for scientists, Kevin Weil; head of Sora, Bill Peebles; and its chief technology officer of enterprise applications, Srinivas Narayanan.
This is a developing story. Please check back for updates.
Tech
Companies Keep Slashing Employees’ Benefits for the Worst Reasons
Employee benefits are in the spotlight this week, and that’s because of three recent stories about US companies cutting back on non-wage compensations for workers.
A Texas tech consulting firm with a forgettable name—TTEC—suddenly became a lot more memorable when it suspended its discretionary 401(k) match program for 16,000 employees through at least the end of 2026. According to Business Insider, which viewed an internal TTEC memo, the company plans to invest in AI certifications, AI tools and training, and automation, among other things.
The auditing and consulting giant Deloitte is also reportedly slashing benefits for some workers starting next year. This includes reducing PTO, halving parental leave, and eliminating a $50,000 reimbursement for family planning services such as adoption, surrogacy, and IVF. San Francisco-based Zoom, meanwhile, has made a smaller-scale change and reduced its parental leave for employees from 22 weeks to 18 weeks for birthing parents.
So what’s the driving force behind this? And are there more cuts to come? The latter is impossible to answer, and the former is unfortunately more complicated than “corporate ghouls go AI.”
First off, “what Deloitte did is completely unconscionable,’” says Joan C. Williams, a professor at UC Law San Francisco, the author of several books on work culture and class dynamics, and an oft-cited scholar on these topics. The consulting firm is cutting the benefits of a specific class of internal workers—in admin, IT support, and finance—while leaving intact benefits for people in client-facing roles. An affected worker will see their parental leave cut from 16 weeks to just eight weeks.
“It treats people differently based on the type of job they’re in, and cutting any mother down to eight weeks of paid leave is just outlandish,” Williams says. “When labor is tight, employers are more generous. But once the power shifts, the benefits contract.”
AI certainly is a convenient excuse these days for any corporate decision that harms workers. But the impetus here is also the cost of the benefits themselves. Earlier this year subsidies from the Affordable Care Act lapsed, and people began dropping out of health care plans entirely. Insurers have cited this as one reason they’ve raised premiums.
Sarahjane Sacchetti, a former top executive at benefits administration companies Cleo and Collective Health, who is working on a new health care initiative, told me that the costs of employer-sponsored health plans have increased significantly over the past five years. A survey last year of over 1,700 US employers by the Mercer health care consulting group found that the health care cost per worker was expected to rise on average 6.5 percent in 2026, the highest since 2010. And this was after factoring in cost-reduction measures; otherwise, the cost of a plan would go up by nearly 9 percent.
“This just starts to eat into how you think about total compensation as an employer,” Sacchetti says. That doesn’t mean the corporation is the ‘good guy,’ she says, but the poor state of American health care policy and lack of safety net are responsible for a lot of the stress that plagues undercompensated or laid-off workers.
Williams points out that the US is one of the few countries that doesn’t offer a federal paid maternal leave—putting it in league with Papua New Guinea and Suriname. “This just shows how crazy it is to provide employee basics like pension and paid parental leave through private employers rather than how other industrialized countries do it,” Williams says. Her proposed solution? “The US needs to join the rest of the universe.”
The irony, of course, is that the US government professes to be obsessed with women having more babies. If women in the US are—as celebrity doctor Mehmet Oz put it this week in the Oval Office—“underbabied,” a comprehensive paid federal leave policy would be the obvious place to start. (Oz also said that “making babies” is “the most creative thing the universe knows.” Don’t tell the AI CEOs.)
Tech
Gantri’s 3D-Printed Lamps Are Going Wireless
Gantri, a San Francisco-based company known for making soft, stylized 3D-printed lamps, is going wireless. That’s thanks to a new partnership with the design firm Ammunition.
Gantri 3D-prints its lamps using plastics made from corn-based polylactic acid (PLA) in its Bay Area facilities. The result is a collection of carefully designed light fixtures with gentle curves that aim to make luxury-style lighting feel somewhat affordable. (Prices range from $200 to $500.)
Last year, the company introduced a program called Gantri Made, which allows shoppers to customize their lights and gives third-party designers the ability to build their own designs using Gantri’s foundational pieces.
Courtesy of Gantri
Gantri first partnered with Ammunition in 2020, developing a line of stylish lamps aiming to highlight what premium light pieces could look like. You’ve almost certainly seen something built with Ammunition’s flair. The firm designed Beats by Dre headphones, the Square point-of-sale tablets you see in shops everywhere, and many other projects, from robot coffee machines to Jay-Z’s failed weed vape cartridges.
This Gantri new collab is a range of lamps that include floor lamps, table lamps, and ones small enough to hold in your hand. (Those are rectangular, with designs inspired by piers around San Francisco.) All the lights are wireless and can be removed from charging ports to run for what Gantri says is 10 or more hours of battery life. Gantri is also developing an app to control the lights. They will work with Matter, the connectivity standard that aims to make smart home tech from different companies work together, but that compatibility isn’t expected until next year.
Gantri CEO Ian Yang points out that for most of human history, light sources were something people carried with them—torches, candles, lanterns. Lights staying in fixed places has become the norm, but he wants these wireless lamps to show there’s another way.
“I really think this product is going to change the way that people think about lighting, but also think about the power of digital manufacturing, about this new material that’s plant-based,” Yang says.
The lamps have a custom charging port, which allows them to stand upright and face any direction while still receiving a charge. They also require a custom charger and cannot be charged via USB-C or another cord in a different room. That may inhibit the mobility the lamp promises, as you won’t be able to move them from room to room and plug them in with any USB-C cord lying around—you’d have to bring that proprietary cable with you. But Yang says this was a deliberate choice, even though it was much more difficult than finding a spot for a USB-C connection. He wanted the lamps to feel portable while also having a place for them to become a fixture in a home.
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