OpenAI has announced a new agreement with Microsoft following the recent leadership turmoil that saw Sam Altman’s brief dismissal and subsequent return as CEO. The deal includes significant changes to OpenAI’s corporate structure, with Microsoft gaining a non-voting board observer position while maintaining its role as a major investor and technical partner. The restructured board will now include three initial directors: Bret Taylor (Chair), Larry Summers, and Adam D’Angelo. This agreement marks a stabilizing moment for OpenAI after a period of intense uncertainty that began with Altman’s sudden firing, which triggered employee protests and threats of mass resignations. The new arrangement aims to strengthen corporate governance while preserving OpenAI’s mission to develop artificial intelligence that benefits humanity. Microsoft’s CEO Satya Nadella expressed satisfaction with the changes, emphasizing the importance of their partnership in advancing AI innovation. The agreement also addresses concerns about oversight and transparency in AI development, with the new board structure designed to balance commercial interests with OpenAI’s original nonprofit mission. This resolution represents a significant shift in OpenAI’s governance model and sets a precedent for how AI companies might structure themselves to manage both technological advancement and ethical considerations.