OpenAIās Billion-Dollar Smooch with Microsoft Gets Nonbinding Makeout
On May 19, 2025, at the oh-so-exciting Microsoft Build 2025 in Seattleābecause where else would billion-dollar tech love dramas unfold?āSatya Nadella and Sam Altman did the corporate duet dance live/video combo to announce a non-binding Memorandum of Understanding between the AI giant OpenAI and Microsoft. Microsoft, the heartbreak hotel thatās invested $13 billion since 2019, now calls OpenAI both a cash cow and a rival, while OpenAI clings to a nonprofit parent that owns $100 billion in fudged equity play. Local philanthropies (bless their conflicted hearts) and the brave Attorneys General of California and Delaware are investigating, making this feel like Silicon Valley soap opera meets nonprofit drama.
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Nothing screams 'healthy partnership' like $13 billion in investments, a $500B valuation, and a contract that's as binding as my old New Yearās resolution to eat kale.
OpenAI and Microsoftās love story is basically a tech Romeo and Juliet but with billions and lawyers instead of death scenes and potions.
That moment when your startupās nonprofit parent has control over $100 billion in shares and the AGs show up uninvited to the party. Awkward!
Source: Theverge | Published: 9/11/2025 | Author: Richard Lawler
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