Microsoft has invested more than $13 billion in OpenAI.The two companies have disputed over the deal terms of their partnership.On Thursday, they announced that a non-binding memorandum of understanding had been signed.

Microsoft and OpenAI have reached a tentative agreement on the terms of their partnership after disputes over governance and future equity stake threatened to rupture the high-stakes alliance.

In a joint statement on Wednesday, the companies said they signed a "non-binding memorandum of understanding (MOU) for the next phase of our partnership."

"We are actively working to finalize contractual terms in a definitive agreement. Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety," the statement said.

Spokespeople for OpenAI and Microsoft did not respond to a request for comment from Business Insider.

The deal represents a major development in the partnership between the storied tech titan and a leading AI powerhouse.

Microsoft, a crucial source of funding for OpenAI, has invested over $13 billion into the startup, starting back in 2019, in exchange for a contractual claim on future profits.

How much Microsoft would get has been one of the few sticking points for the two companies.

This is a developing story. Check back for updates.