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OpenAI and Microsoft sign preliminary deal to revise partnership terms

Companies work to finalize terms as OpenAI pursues for-profit restructuring.

In May, OpenAI abandoned its original plan to fully convert to a for-profit company after mounting pressure from former employees, regulators, and critics, including Elon Musk. The company instead announced a modified approach where the nonprofit board would retain control while converting its for-profit subsidiary into a public benefit corporation. OpenAI has diversified its infrastructure partnerships, including participation in the $500 billion Stargate Project with Oracle and SoftBank, while Microsoft has expanded Azure to host competing models from Meta, xAI, and DeepSeek.

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