05:48 AM EDT, 09/12/2025 (MT Newswires) -- Microsoft ( MSFT ) and OpenAI said Thursday they signed a nonbinding memorandum of understanding for the next phase of their partnership, while OpenAI separately said that its nonprofit parent will continue to have oversight over the company and will own an equity stake in excess of $100 billion.

"We are actively working to finalize contractual terms in a definitive agreement," the companies said in a joint statement.

Separately, OpenAI said that its planned transformation will see its existing nonprofit arm "both control a public benefit corporation and share directly in its success."

"OpenAI started as a nonprofit, remains one today, and will continue to be one -- with the nonprofit holding the authority that guides our future," the parent of generative artificial intelligence chatbot ChatGPT said.

Microsoft ( MSFT ) shares were up 1.5% in recent premarket activity Friday.