On the other side there are risks as well. Going public would subject OpenAI to market pressures, regulatory scrutiny and the challenge of balancing innovation, profitability and AI safety. Moreover, the company's new structure aims to keep oversight in the hands of the non-profit foundation while giving the operational entity more flexibility.

Microsoft made its first investment in Sam Altman's OpenAI in 2019. It now holds a 27% in OpenAI's for-profit business.

ChatGPT is introducing a "Company knowledge" feature, allowing it to access and reason over private enterprise data from apps like Slack, SharePoint, and Google Drive.

The software giant’s AI chief said this week that the company won’t be offering “simulated erotica” through any of its AI products. The announcement from Microsoft AI CEO Mustafa Suleyman marked a sharp contrast with the company’s partner OpenAI, which recently said it would allow adult users to engage in explicit conversations with ChatGPT.

Microsoft lifted a funding restriction on OpenAI that became a point of conflict after ChatGPT took off required more computing power.

OpenAI will offer its ChatGPT Go subscription free to users in India for one year starting November 4, the Microsoft- backed startup said on Tuesday, as it seeks to boost adoption in its second-largest market.