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Shipping companies support a first-ever global fee on greenhouse gases, opposed by Trump officials

Summary

  • Nearly 200 shipping firms urge adoption of global emissions fee
  • Proposal to be debated at meeting in London next month
  • U.S. rejects plan, calls it a “global carbon tax” and threatens retaliation
  • Supporters say one global system prevents costly regional patchworks
  • IMO aims for net-zero by 2050

Nearly 200 shipping companies said Monday they want the world’s largest maritime nations to adopt regulations that include the first-ever global fee on to reduce their sector’s emissions.

The , an alliance of companies, governments and intergovernmental organizations, is asking member states of the International Maritime Organization to support adopting regulations to transition to green shipping, including the fee, when they meet in London next month. The statement was shared exclusively with The Associated Press in advance.

“Given the significance of the political decision being made, we think it is important that industry voices in favor of this adoption be heard,” Jesse Fahnestock, who leads work at the Global Maritime Forum, said Monday. The forum manages the Getting to Zero Coalition.

The unequivocally rejects the proposal before the IMO and has threatened to retaliate if nations support it, setting the stage for a fight over the major climate deal. The U.S. considers the proposed regulatory framework “effectively a global carbon tax on Americans levied by an unaccountable U.N. organization,” the U.S. Secretaries of State, Commerce, Energy and Transportation said in a joint statement last month.

U.S.-based shipping companies, however, have endorsed it. The Chamber of Shipping of America wants one global system, not multiple regional systems that could double charge vessels for their emissions depending on the route, said Kathy Metcalf, the chamber’s president emeritus.

Shipping emissions have grown over the last decade to about 3% of the global total as vessels have gotten bigger, delivering more cargo per trip and using immense amounts of fossil fuels. The IMO, which regulates international shipping, set a target for the sector to reach net-zero greenhouse gas emissions by about 2050, and has committed to ensuring that fuels with zero or near-zero emissions are used more widely.

In April, IMO member states agreed on the contents of a regulatory framework to impose a minimum fee for every ton of greenhouse gases emitted by ships above certain thresholds and set a marine fuel standard to phase in cleaner fuels. The IMO aims for consensus in decision-making but, in this case, had to vote. The United States was notably absent.

Now nations have to decide if the regulations will enter into force in 2027. If agreed upon, the regulations will become mandatory for large oceangoing ships over 5,000 gross tonnage, which emit 85% of the total carbon emissions from international shipping, according to the IMO.

If nations don’t agree, shipping’s decarbonization will be further delayed and “the chance of the sector playing a proper and fair part in the fight to keep global heating below dangerous levels will almost certainly be lost,” said Delaine McCullough, president of the Clean Shipping Coalition and Ocean Conservancy shipping program director.

The U.S. secretaries said in their statement that “fellow IMO members should be on notice” the U.S. will “not hesitate to retaliate or explore remedies for our citizens” if they do not support the United States, against this action. They said ships will have to pay fees for failing to meet “unattainable fuel standards and emissions targets,” driving up costs, and the fuel standards would “conveniently benefit .” China is a leader in developing and producing cleaner fuels for shipping.

While U.S. opposition and pressure cannot be taken for granted, it still appears as though a majority of countries currently support the regulations, said Faig Abbasov from Transport and Environment, a Brussels-based environmental nongovernmental organization. Abbasov said the deal reached in April was not ambitious enough, but this is an opportunity to launch the sector’s decarbonization and it can be strengthened.

Shipping companies want the regulations because it gives them the certainty needed to confidently make investments in cleaner technologies, such as fuels that are alternatives to fossil fuels and the ships that run on them. In addition to the Getting to Zero Coalition, the International Chamber of Shipping, which represents over 80% of the world’s merchant fleet, is advocating for adoption when nations meet at IMO Headquarters in London from Oct. 14 to 17.

U.S., China reach framework deal on TikTok ownership

Summary

  • U.S. and reach framework agreement on ownership
  • Treasury Secretary Scott Bessent says commercial terms agreed
  • Trump and Xi to discuss details Friday
  • Deal aims to transfer TikTok’s ownership to U.S. entities
  • Talks part of wider trade negotiations launched under Trump

MADRID (AP) — A framework deal has been reached between China and the U.S. for the ownership of popular social video platform TikTok, U.S. Treasury Secretary Scott Bessent said after weekend trade talks in Spain.

Bessent said in a press conference after the latest round of trade talks between the world’s top two economies concluded in Madrid that U.S. President and Chinese Premier would speak Friday to possibly finalize the deal. He said the objective of the deal would be to switch to U.S. ownership.

“We are not going to talk about the commercial terms of the deal,” Bessent said. “It’s between two private parties. But the commercial terms have been agreed upon.”

Li Chenggang, China’s international trade representative, said the two sides have reached “basic framework consensus” to properly solve TikTok-related issues in a cooperative way, reduce investment barriers and promote related economic and trade cooperation, according to China’s official news agency Xinhua.

Li said the two sides had “candid, in-depth” discussions over TikTok and matters of concern to China.

The meeting in Madrid is the fourth round of trade talks between U.S. and Chinese officials since Trump launched a tariff war on Chinese goods in April. A fifth round of negotiations is likely to happen “in the coming weeks,” Bessent said, with both governments planning for a possible summit between Trump and Xi later this year or early next year to solidify a trade agreement.

However, nothing has been confirmed, and analysts say possible trade bumps could delay the visit.

Chinese officials didn’t immediately speak to the media following the Madrid talks, but Chinese Vice Premier He Lifeng, who led the Chinese delegation, was seen smiling when he left the venue.

During Joe Biden’s Democratic presidency, Congress and the White House used grounds to approve a U.S. ban on TikTok unless its parent company, , sold its controlling stake.

Trump, a Republican, has repeatedly extended the deadline for shutting down TikTok, even though the law allows for just one 90-day reprieve, and only if there’s a deal on the table and a formal notification to Congress.

The current extension expires Wednesday, two days before Trump and Xi are scheduled to discuss the final details of the framework deal. Although Trump hasn’t addressed the forthcoming deadline directly, he has claimed that he can delay the ban indefinitely.

TikTok is one of more than 100 apps developed in the past decade by ByteDance, a firm founded in 2012 by Chinese entrepreneur Zhang Yiming and headquartered in Beijing’s northwestern Haidian district.

In 2016, ByteDance launched a short-form video platform called Douyin in China and followed up with an international version called TikTok. It then bought Musical.ly, a lip-syncing platform popular with teens in the U.S. and Europe, and combined it with TikTok while keeping the app separate from Douyin.

Soon after, the app boomed in popularity in the U.S. and many other countries, becoming the first Chinese platform to make serious inroads in the West. Unlike other platforms that focused on cultivating connections among users, TikTok tailored content to people’s interests.

The often silly videos and music clips content creators posted gave TikTok an image as a sunny corner of the internet where users could find fun and a sense of authenticity. Finding an audience on the platform helped launch the careers of music artists like Lil Nas X.

TikTok gained more traction during the shutdowns of the COVID-19 pandemic, when short dances that went viral became a mainstay of the app. To better compete, Instagram and YouTube eventually came out with their own tools for making short-form videos, respectively known as Reels and Shorts. By that point, TikTok was a bona fide hit.

Challenges came in tandem with TikTok’s success. U.S. officials expressed concerns about the company’s roots and ownership, pointing to laws in China that require Chinese companies to hand over data requested by the government. Another concern became the proprietary algorithm that populates what users see on the app.

Nvidia violated antimonopoly laws, China says

Summary

  • China’s State Administration for Market Regulation cites for violations
  • Probe linked to Nvidia’s of
  • Nvidia says it complies with the law
  • Announcement follows China’s new probe into U.S.
  • Investigation comes as U.S.-China trade talks open in Spain

LONDON (AP) — China accused Nvidia on Monday of violating the country’s antimonopoly laws and said it would step up scrutiny of the world’s leading chipmaker, escalating tensions with Washington as the two countries held trade talks this week.

Chinese regulators said a preliminary investigation found that Nvidia didn’t comply with conditions imposed when it purchased Mellanox Technologies, a network and data transmission company.

The one-sentence statement from the State Administration for Market Regulation statement did not mention any punishment, but said it would carry out “further investigation.”

An Nvidia spokesperson said, “We comply with the law in all respects. We will continue to cooperate with all relevant government agencies as they evaluate the impact of export controls on competition in the commercial markets.”

Regulators said in December that they were investigating the company for suspected violations stemming from the $6.9 billion acquisition of Mellanox. The deal was completed in 2020 after the Chinese regulator gave conditional approval for Nvidia to buy the Israeli company.

The announcement, which came as the two sides held trade talks in Spain, is the latest tit-for-tat move between Washington and Beijing in their trade battle over technology focusing on semiconductors and the equipment to make them.

On Saturday, China’s Ministry of Commerce said it was carrying out an antidumping investigation into certain analog IC chips imported from the U.S., including commodity chips commonly made by companies such as Texas Instruments and ON Semiconductor.

The ministry also announced a separate antidiscrimination probe into U.S. measures against China’s chip sector.

A day earlier, the U.S. had sanctioned two Chinese companies accused of acquiring equipment for major Chinese chipmaker SMIC.

The talks in Madrid between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng in Madrid concluded Monday with Bessent telling reporters the two sides reached a framework deal for U.S. ownership of . However, details were scant and Chinese negotiators provided no confirmation of a deal.

It’s the fourth round of discussions after meetings in London, Geneva and Stockholm. The two governments have agreed to several 90-day pauses on a series of increasing reciprocal tariffs, staving off an all-out trade war.

Santa Clara, Calif.-based Nvidia has become central to the U.S.-China trade war, as the two sides battle for tech supremacy. The boom has fueled demand for the Nvidia’s advanced processors, making it the world’s most valuable company.

The company has faced restrictions on chip exports to China imposed by President Joe Biden’s administration that were then reinforced by President . Nvidia won approval in July from the to sell China its H20 graphics processing unit, which is less powerful and designed to comply with U.S. export curbs.

ODU hires new VP for national security initiatives

Old Dominion University announced last week that it has named as its inaugural associate vice president for Initiatives, effective June 6.

In the role, Irvine will oversee  the -based university’s national security strategic research. The university aims to drive national and global impact in fields such as and machine learning, autonomous and networked systems, computational and data science, , and modeling and simulation.

In a statement, Irvine said there is “tremendous opportunity for to bridge the gap between and Washington, D.C., becoming a visible presence, resource and catalyst for change.”

Irvine was most recently the executive director of the Naval Surface and Undersea Warfare Centers, where he managed more than 30,000 personnel and $16 billion in research, development, testing and evaluation programs for the Navy. Before that, he was executive director of Submarine Forces, where he advised on strategic deterrence.

He has more than 27 years of service with the U.S. Navy and joined the federal government’s Senior Executive Service in 2019. Earlier in his career, he was a hydrodynamics expert at the Naval Surface Warfare Center Carderock Division and as a researcher at Pennsylvania State University.

Kenneth Fridley, ODU’s vice president for research and economic development, said the university designated national security as one of four research focus areas earlier this year. He said hiring Irvine is the university’s “first major step forward” in that effort, saying his experience and past leadership make him “the perfect choice.”

Irvine believes ODU’s proximity to the largest naval base in the world and Hampton Roads-based shipbuilding and defense companies will be beneficial to helping him develop a national security program. He intends to promote collaboration between the university’s centers of research and development, including the Virginia Modeling, Analysis and Simulation Center, the Virginia Institute for Spaceflight & Autonomy, the Institute for Coastal Adaptation and Resilience, the Virginia Digital Maritime Center and the Institute for Autonomous and Connected Systems.

Irvine holds a doctorate in mechanical engineering from the University of Iowa and degrees in ocean engineering from Virginia Tech. He is a graduate of Harvard Kennedy School Senior Executive Fellows program and holds an MIT Sloan executive certificate in management and leadership.

His accolades include Navy Superior and Meritorious Civilian Service Awards and recognition as a fellow with the Society of Naval Architects and Marine Engineers.

Aug. housing inventory, prices rise across Virginia regions

SUMMARY:

  • , prices and inventory for August increased year-over-year in NoVa
  • inventory and prices rose, but housing sales dropped
  • Single-family home sales, prices and inventory rose in Central Virginia last month

Housing inventory and sold prices rose last month in , Hampton Roads and Central Virginia, although home sales declined in Hampton Roads.

Northern Virginia

August home sales, prices and inventory increased year-over-year in Northern Virginia, according to data released Thursday. The data reflect “a cooler pace of activity” and continued price growth, according to .

“The August data highlight a market that is adjusting its rhythm, while maintaining steady demand,” NVAR Ryan McLaughlin said in a statement. “Buyers are no longer racing against the clock the way they were a year ago, but the increase in total sales volume and higher prices shows that demand for Northern Virginia housing remains strong.”

Last month, 1,439 homes sold in Northern Virginia, a 2% increase from August 2024. Pending sales last month totaled 1,403 units, up 9.6% compared with August 2024.

Despite the modest increase in the number of closed sales, sold dollar volume rose 5.9% year-over-year, reaching more than $1.27 billion. Rising home prices contributed to the increase: The median sold price in August was $750,201, up 1.7% from the same month last year.

Inventory increased dramatically in August. Active listings in the region totaled 2,475 properties, a 36.4% year-over-year increase. The month’s supply of inventory (MSI) — a measure of how many months there would be homes on the market if no new inventory were added — rose to 1.81, up 31.2% from August 2024.

Homes spent an average of 26 days on the market last month, a 44.4% increase from the 18-day average seen in August 2024.

“The trends suggest we may see a more measured cadence heading into the end of the year, with buyers continuing to benefit from greater choice,” McLaughlin said in a statement. “At the same time, steady price appreciation reinforces the long-term strength of Northern Virginia’s .”

NVAR reports home sales activity for Fairfax and Arlington counties, the cities of Alexandria, Fairfax and Falls Church, and the towns of Vienna, Herndon and Clifton.

Hampton Roads

Hampton Roads housing sales declined last month compared with August 2024, as inventory and prices rose, according to data.

Closed sales totaled 2,243 last month, down 1.7% from the 2,282 recorded in August 2024. There were 2,212 pending sales in August, up from 2,039 in the same month last year.

The number of active residential listings in Hampton Roads reached its highest level in five years last month, according to . Active listings totaled 5,709, up almost 19% from the 4,811 recorded in August 2024. MSI was 2.77, up from 2.38 in August 2024.

Of the large cities, Suffolk had the largest increase in active listings, which rose 18.9% from 512 in August 2024 to 609 last month. ‘s active listings rose 18.6% year-over-year, from 562 to 667.

“Buyers have more homes to choose from than any month since June 2020, when there were 5,845 homes listed for sale in REIN’s database,” Barbara Wolcott with Berkshire Hathaway HomeServices RW Towne Realty, president of REIN’s board of directors, said in a statement. “Mortgage rates are at a 10-month low, which is also good for potential buyers.”

The median sale price was $370,000, up 5.6% from $350,250 a year ago. Of the communities that had at least 100 closed sales last month, Chesapeake had the highest MSP — $425,000, a 3.4% year-over-year increase.

Homes spent a median of 25 days on the market, up from 21 days in the same month last year.

Founded in 1969, REIN is a regional multiple listing service that covers an area stretching from Williamsburg east to Virginia Beach and south across the North Carolina border.

Central Virginia

In Central Virginia, single-family home sales, prices and inventory rose year-over-year in August, according to regional data from the Central Virginia Regional Multiple Listing Service (CVR MLS).

Closed sales totaled 1,209, up 2.9% from August 2024, while pending sales numbered 1,134, up 1.2% year-over-year.

There were 2,211 single-family homes listed for sale, up 2.6% from August 2024, although new listings declined 6.4%, to 1,364. The MSI stood at 2, which is unchanged from the same month last year.

The median sales price for single-family homes in the region rose 4.3%, to $417,125.

Closed sales for condos/townhouses in Central Virginia also rose. Last month, 276 condos/townhouses sold, a 12.2% increase from August 2024. There were 256 pending sales, up 4.5% from the same month last year.

Active listings totaled 686, a 35% increase year-over-year, and new listings numbered 337, up 3.1%. The MSI for condos/townhouses was 2.9, up 26.1% from the MSI of 2.3 for the same month last year.

The median sales price for condos/townhouses, though, was $365,000, down 2.3% from August 2024.

The CVR MLS data referenced for this piece covers the cities of Richmond and Petersburg and the counties of Amelia, Charles City, Chesterfield, Colonial Heights, Dinwiddie, Goochland, Hanover, Henrico, Hopewell, King & Queen, King William, New Kent, Powhatan and Prince George.

UVA Health interim leader is named permanent CEO

Summary: 

After serving as UVA Health’s interim leader for seven months, Dr. Mitchell Rosner has been named CEO of the health system as well as executive vice president for health affairs for the University of Virginia, the university announced Sept. 12.

A nephrologist and medicine professor at U.Va.’s medical school, Rosner has acted as interim leader of UVA Health since February, when Dr. Craig Kent resigned. Kent left the post after an independent investigation undertaken following a September 2024 letter of “no confidence” signed by 128 physicians, which alleged Kent and Dr. Melina Kibbe, dean of the U.Va. School of Medicine, created a “culture of fear and retaliation” that “compromised patient safety.”

“It’s an incredible honor,” Rosner said in a statement. “I’ve devoted my career to UVA and UVA Health, so this is the opportunity of a lifetime to be able to serve my colleagues, my friends and the community that I have lived in so long.”

Appointed to a three-year term, Rosner was named to the position near the end of Friday’s University of Virginia Board of Visitors meeting. UVA Health includes four hospitals across Charlottesville, Culpeper and , along with the , UVA School of Nursing, UVA Physicians Group and the Claude Moore Health Sciences Library.

Previously, more than two dozen chairs and leaders at UVA Health, including Dr. Taison Bell, interim chair of the university’s department of medicine, sent a letter to the university’s rector and interim president advocating for Rosner to be hired for the permanent leadership role.

“During his brief tenure as interim EVP for health affairs, Dr. Rosner has gained and fostered the trust and respect of our faculty and lent much needed stability to a tumultuous period for UVA Health,” the letter stated.

U.Va.’s interim president, Paul Mahoney, suggested waiving a national search for the position, and the university’s rector, Rachel Sheridan, with the support of the full board, agreed.

A faculty member at the university’s School of Medicine for 21 years, Rosner served as chair of the department of medicine before being selected for the interim role. After earning a degree from Harvard University, Rosner earned his medical degree from the Medical College of Georgia. He completed his residency and fellowship in nephrology at UVA Health University Medical Center. He has published seven books and more than 200 journal articles.

Bell called Rosner “the kind of leader you read about in leadership books.”

Rosner’s “communication style is approachable, open and honest,” Bell added in a statement.  “He listens carefully while bringing people together to make thoughtful, inclusive decisions. He deeply considers how his decisions will impact others, and he consistently seeks ways to empower others around him to lead. Beyond his vision and integrity, it is this genuine commitment to people that sets him apart.”

Earlier this week, UVA Health announced it has appointed longtime executive Teresa L. Edwards to serve as of its University Medical Center.

UVA Health has had a tumultuous year. University Medical Center CEO Wendy Horton announced in July plans to leave in September. Kibbe formally announced her resignation in August.

Hodges Partnership sold to 4 SVPs

Ownership of The Partnership will transition within the firm, the -based firm announced Wednesday.

Four senior vice presidents have entered into an ownership agreement with the firm’s founding partners, Jon Newman and Josh Dare. The agreement takes effect Jan. 1, 2026, and will “incrementally transfer ownership” of the firm to the senior vice presidents over the next several years, according to a news release. Additionally, Dare will retire Dec. 31.

The four senior vice presidents buying the firm are: Lindsay O’Bar, client services and culture; Paulyn Ocampo, client and agency operations; Sean Ryan, media relations; and Greg Surber, research and insights. They will continue to work on client accounts and maintain their management responsibilities.

“For all practical purposes, this senior team has been effectively leading Hodges over the past several years, and each of them has respected reputations in the public relations, business and civic communities of Richmond,” Newman said in a statement. “Josh and I are thrilled to be able to turn the keys over to a group of professionals in whom we have complete confidence to carry the Hodges torch.”

Newman and Dare founded Hodges in 2002. The 23-person firm’s clients include the Virginia Community College System, Kroger Mid-Atlantic, Hilldrup, Richmond Region Tourism, The Colonial Williamsburg Foundation, Mercy Chefs and Estes Express Lines.

“We’re incredibly grateful to Jon and Josh for the trust they’ve placed in our team to carry Hodges forward. … We’re thrilled by the opportunity to shape Hodges’ next chapter,” Ryan — the agency’s second hire in 2003 — said in a statement.

Though Dare is retiring, Newman is keeping his ownership stake over the next several years and will continue to serve as CEO “for the foreseeable future,” according to a news release.

Dare met Newman at The Martin Agency, where Dare was senior communications officer. Previously, he had held public affairs posts at the FBI and the National Endowment for the Arts, been a press secretary in Congress and helped to found two tech startups.

“Founding and growing Hodges with my friend Jon Newman has been the most professionally gratifying achievement of my career,” Dare said in a statement. “And while I will miss my incredible colleagues and clients, I look forward to downshifting gears with more travel, grandparenting, volunteering, creative writing and maybe even some accordion lessons, so apologies in advance.”

American Systems acquires Epsilon, adds 400 employees

Chantilly-based government IT contractor announced this week that it has acquired North Carolina-based company .

American Systems, which provides IT and engineering services to the federal government in aid of , said the transaction marks its largest to date, with more than 400 Epsilon employees joining the company.

Financial terms of the transaction were not disclosed, and neither company immediately returned requests for comment. It is unclear whether any Epsilon executives will take on leadership roles at American Systems and if there will be any layoffs due to the merger.

“Acquisitions are an important element of our growth strategy, and we work hard to ensure that we select companies that are a good fit for us, both strategically and culturally,” American Systems President and John Steckel said in a statement. “Epsilon shares our commitment to supporting national priorities, and their culture will mesh well with ours. This acquisition marks an important milestone in our strategic growth, broadening our customer base and deepening our ability to support them in their efforts to modernize and transform securely, rapidly and efficiently.”

The company says Epsilon’s service offerings will be integrated with American Systems in January 2026. Until then, Epsilon will continue to support select markets as a wholly-owned subsidiary.

Founded in 2009, Epsilon is also a . It is headquartered in Weaverville, North Carolina, but has a key office in Crystal City.

“Joining American Systems allows us to take everything that we have built over the past sixteen years and make it even better.” said Epsilon CEO Peter Penzell. “Expanding on what we have built while giving our employees the opportunity to become employee-owners in American Systems creates an amazing opportunity for everyone.”

PilieroMazza and Deep Water Point and Associates advised American Systems on the transaction, and KPMG Corporate Finance and Miles & Stockbridge advised Epsilon.

Founded in 1975, American Systems ranks among the top 100 employee-owned firms in the nation, with more than 1,600 employee owners. It surpassed $400 million in annual revenue in 2020.

SAIC names chief growth officer

Reston-based Science Applications International Corp. () announced Monday that it has promoted to , leading .

Ritchie, who began his career at SAIC as a software engineering intern, has served as the company’s chief officer since 2022. SAIC credits his efforts in that role with advancing the company’s enterprise growth strategy, contributing to numerous key contract awards and strengthening SAIC’s leadership in secure multi-cloud solutions.

In his new role, Ritchie will work to enhance communication between SAIC’s innovation, technology and business development teams, with a goal of delivering integrated solutions in critical areas such as , space and autonomy. He will report to Tim Turitto, executive vice president of enterprise operations and chief of staff to SAIC Toni Townes-Whitley.

“Bob’s appointment reflects our forward-looking vision at SAIC, where deep technical expertise and mission-focused business development are unified to deliver unmatched outcomes for our customers,” Turitto said in a news release. “By combining these functions, we are accelerating innovation and ensuring our solutions anticipate and align with the nation’s most pressing priorities.”

Ritchie, who holds a degree in computer engineering from Virginia Tech, previously worked at Capital One, where he was director of software engineering. In 2019, he returned to SAIC to lead its software practice.

SAIC has about 24,000 employees and reported annual revenue of $7.48 billion for fiscal 2025.

OpenAI reaches new agreement with Microsoft to change its corporate structure

Summary

  • , announce new tentative agreement
  • Deal described as “next phase” of their partnership
  • OpenAI nonprofit to hold $100B stake in for-profit arm
  • Few details released on the new structure
  • Regulators and competitors watching closely

OpenAI has reached a new tentative agreement with Microsoft and said its nonprofit, which technically controls its business, will now be given a $100 billion in its for-profit corporation.

The maker of  said it had reached a new nonbinding agreement with Microsoft, its longtime partner, “for the next phase of our partnership.”

The announcements on Thursday include a few details about these new arrangements. OpenAI’s proposed changes to its have drawn the scrutiny of regulators, competitors and advocates concerned about the impacts of .

OpenAI was founded as a nonprofit in 2015 and its nonprofit board has continued to control the for-profit subsidiary that now develops and sells its AI products. It’s not clear whether the $100 billion equity stake the nonprofit will get as part of this announcement represents a controlling stake in the business.

California Attorney General Rob Bonta said last week that his office was investigating OpenAI’s proposed restructuring of its finances and governance. His office said they could not comment on the new announcements but said they are “committed to protecting charitable assets for their intended purpose.”

Bonta and Delaware Attorney General Kathy Jennings also sent the company a letter expressing concerns about the safety of ChatGPT after meeting with OpenAI’s legal team earlier last week in Delaware, where OpenAI is incorporated.

“Together, we are particularly concerned with ensuring that the stated safety mission of OpenAI as a non-profit remains front and center,” Bonta said in a statement last week.

Microsoft invested its first $1 billion in OpenAI in 2019 and the two companies later formed an agreement that made Microsoft the exclusive provider of the computing power needed to build OpenAI’s . In turn, Microsoft heavily used the technology behind ChatGPT to enhance its own AI products.

The two companies announced on Jan. 21 that they were altering that agreement, enabling the smaller company to build its own computing capacity, “primarily for research and training of models.” That coincided with OpenAI’s announcements of a partnership with Oracle to build a massive new data center in Abilene, Texas.

But other parts of its agreements with Microsoft remained up in the air as the two companies appeared to veer further apart. Their Thursday joint statement said they were still “actively working to finalize contractual terms in a definitive agreement.” Both companies declined further comment.

OpenAI had given its nonprofit board of directors — whose members now include a former U.S. Treasury secretary — the responsibility of deciding when its AI systems have reached the point at which they “outperform humans at most economically valuable work,” a concept known as artificial general intelligence, or AGI.

Such an achievement, per its earlier agreements, would cut off Microsoft from the rights to commercialize such a system, since the terms “only apply to pre-AGI technology.”

OpenAI’s corporate structure and nonprofit mission are also the subject of a lawsuit brought by Elon Musk, who helped found the nonprofit research lab and provided initial funding. Musk’s suit seeks to stop OpenAI from taking control of the company away from its nonprofit and alleges it has betrayed its promise to develop AI for the benefit of humanity.