New agreement strengthens Microsoft’s long-term partnership with OpenAI and maintains exclusive AI technology and Azure integration rights.
Microsoft has announced that it will retain a 27% ownership stake in OpenAI, valued at approximately $135 billion, following a major corporate restructuring and new definitive partnership agreement between the two tech giants.
The restructuring follows OpenAI’s transition into a for-profit entity known as OpenAI Group Public Benefit Corporation (PBC) — a move designed to accelerate investment, innovation, and global expansion in Artificial Intelligence (AI) and machine learning technologies.
Microsoft’s Investment in OpenAI Valued at $135 Billion
Under the new agreement, Microsoft’s investment in OpenAI Group PBC is estimated at $135 billion, reaffirming its position as one of the largest stakeholders in the world’s leading AI research company.
Before this restructuring and new funding round, Microsoft held a 32.5% stake in OpenAI’s for-profit division. The updated agreement adjusts that ownership to 27%, reflecting changes in equity distribution and recapitalization. The OpenAI Foundation, which remains a nonprofit entity, will continue to hold equity in the for-profit arm, currently valued at around $130 billion, according to Bret Taylor, Chair of the OpenAI Board of Directors.
Strategic Partnership to Advance Artificial General Intelligence (AGI)
The updated partnership ensures that Microsoft retains exclusive rights to OpenAI’s technology, research, and Azure cloud integration until the development of Artificial General Intelligence (AGI) — a next-generation form of AI capable of outperforming human intelligence.
Under the agreement, Microsoft’s IP rights for AI models and products will extend through 2032, covering even post-AGI models (subject to safety and compliance conditions). Microsoft’s research-related IP rights will remain active until 2030 or AGI verification, whichever occurs first. These rights exclude sensitive elements like model architectures, training weights, inference algorithms, and fine-tuning data, as well as data center technologies — ensuring responsible governance and data privacy.
Once OpenAI officially declares the creation of AGI, that announcement must be verified by an independent expert panel to ensure transparency and accountability.
Restructuring to Accelerate AI Innovation and Commercialization
The creation of the OpenAI Group PBC marks a pivotal moment in OpenAI’s evolution, signaling its shift from a primarily nonprofit model to a sustainable for-profit structure designed to attract large-scale investment and accelerate AI product development.
This restructuring allows OpenAI to expand its AI research capabilities, commercial partnerships, and global footprint, while maintaining its ethical and safety commitments under the OpenAI Foundation. For Microsoft, this renewed partnership enhances its AI leadership strategy, reinforcing its position at the forefront of enterprise AI solutions, generative AI, and cloud computing innovation through Azure AI services.
