In a landmark development in the world of artificial intelligence, Microsoft has acquired a 27% ownership stake in OpenAI, the company behind ChatGPT, following the AI firm’s transition into a Public Benefit Corporation (PBC). The deal, valued at approximately $135 billion, marks one of the largest corporate partnerships in the AI sector to date.
The restructuring gives Microsoft a powerful foothold in OpenAI’s future while ensuring that the tech giant remains closely aligned with one of the most advanced AI research organizations in the world.
OpenAI Transforms Into a Public Benefit Corporation
OpenAI, which was originally founded as a non-profit organization, has officially completed its transformation into a public benefit corporation — a move designed to balance profit motives with its mission to ensure that artificial general intelligence (AGI) benefits all of humanity.
Under the new structure, the non-profit entity will now be known as the OpenAI Foundation, which will hold an equity stake worth roughly $130 billion in the newly formed OpenAI Group PBC — the for-profit arm responsible for commercial operations and partnerships.
Microsoft’s Continued Access to AI Models Until 2032
As part of the updated agreement, Microsoft will maintain exclusive access to OpenAI’s models and technology until 2032, even if OpenAI achieves AGI — a major milestone in artificial intelligence where machines match or surpass human intelligence.
Previously, Microsoft’s access was limited until 2030 or until AGI was achieved, whichever came first. The new deal effectively extends the partnership’s duration and deepens Microsoft’s involvement in OpenAI’s future breakthroughs.
$250 Billion Azure Commitment — But No First Right of Refusal
Another key detail in the new arrangement involves OpenAI’s commitment to purchase $250 billion worth of Microsoft Azure cloud services, further solidifying Azure as the preferred infrastructure for OpenAI’s large-scale AI models and global operations.
However, in a notable change, Microsoft will no longer retain the right of first refusal to be OpenAI’s compute partner — signaling a more open approach that could allow other cloud providers to collaborate with OpenAI in the future.
A Strategic Move in the AI Race
This restructuring and equity shift come at a time when major tech players are racing to dominate the rapidly evolving field of artificial intelligence. Microsoft’s deep integration with OpenAI has already transformed its products, with Copilot, Bing AI, and Microsoft 365 AI showcasing real-world applications of OpenAI’s technology.
By securing a 27% ownership in OpenAI Group PBC, Microsoft is positioning itself not just as a technology partner but as a long-term stakeholder in the next generation of AI innovation.
Summary: Key Highlights
- Microsoft now owns 27% of OpenAI, valued at around $135 billion.
- OpenAI restructures into a Public Benefit Corporation named OpenAI Group PBC.
- The OpenAI Foundation (non-profit) holds equity worth $130 billion.
- Microsoft gains access to OpenAI’s models until 2032, extending its previous deal.
- OpenAI agrees to buy $250 billion worth of Azure services.
- Microsoft loses its right of first refusal as OpenAI’s compute partner.
Conclusion
The restructured partnership between Microsoft and OpenAI marks a pivotal chapter in the global AI narrative. As OpenAI transitions into a Public Benefit Corporation, it reaffirms its mission to advance safe and beneficial AI development — with Microsoft standing as a major strategic ally.
With billions at stake and AGI on the horizon, the collaboration between these two tech titans could shape the future of artificial intelligence for decades to come.