OpenAI and Microsoft reach initial agreement on next phase of alliance

OpenAI and Microsoft have reached a preliminary agreement for the next phase of their partnership. The two companies have signed a non-binding memorandum of understanding and are "actively working to finalize the contractual terms of a definitive agreement," according to a statement.

"Together, we remain focused on providing the best AI tools for everyone, building on our shared commitment to security," the statement continued.

The preliminary agreement follows months of negotiations during which OpenAI sought Microsoft's approval to reorganize into a for-profit company.