In a historic restructuring, OpenAI has granted Microsoft a 27% ownership stake, cementing a partnership that now values OpenAI at $500 billion. This move resolves a year of negotiations and clears a definitive path for OpenAI to operate as a for-profit entity.
The new agreement, announced in an official blog post, extends Microsoft’s rights to OpenAI’s AI models through the year 2032. This long-term security helped propel Microsoft’s market capitalisation back above the $4 trillion mark following the news.
The deal represents a fundamental shift for OpenAI, which began as a non-profit research lab. It now operates as a Public Benefit Corporation. This model allows OpenAI to pursue aggressive commercial growth and raise substantial capital while its original non-profit foundation retains control to ensure its mission of developing safe and beneficial AI remains the priority.
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For Microsoft, the stake is estimated at approximately $135 billion. This deepens its strategic alignment with the AI pioneer and secures its access to cutting-edge technology for the next decade.
The restructuring removes major financial constraints that had limited OpenAI. While Microsoft is a major beneficiary, OpenAI gains significant flexibility. A key change is that Microsoft no longer holds exclusive rights as OpenAI’s sole cloud provider, though OpenAI has committed to purchasing billions in computing resources from Azure.
This development simplifies OpenAI’s corporate governance and provides a clear trajectory for its future, potentially paving the way for an eventual public stock offering. The arrangement successfully balances the immense resources needed to build next-generation AI with the crucial ethical oversight of its founding principles.