The next chapter of the Microsoft–OpenAI partnership Microsoft and OpenAI have announced a new definitive agreement that marks the next phase of their long-standing collaboration, which began in 2019 with Microsoft’s investment in OpenAI’s research efforts. The partnership has evolved from a financial stake to a strategic alliance, with the latest agreement aiming to strengthen their joint goals of advancing artificial intelligence responsibly and ensuring its benefits are widely accessible. The updated terms include significant changes to ownership, intellectual property rights, and operational flexibility, positioning both companies for long-term growth and innovation. Under the new agreement, Microsoft supports OpenAI’s transition to a public benefit corporation (PBC) and its recapitalization. Following this restructuring, Microsoft holds an investment in OpenAI Group PBC valued at approximately $135 billion, representing roughly 27 percent on an as-converted diluted basis. This stake includes all owners—employees, investors, and the OpenAI Foundation. Excluding recent funding rounds, Microsoft previously held a 32.5 percent stake in the for-profit OpenAI. The agreement preserves key elements of their partnership, including OpenAI’s role as Microsoft’s frontier model partner and Microsoft’s exclusive IP rights and Azure API exclusivity until the development of Artificial General Intelligence (AGI). The new terms also introduce refinements and additional provisions to allow both companies to independently advance innovation and growth. For instance, the declaration of AGI by OpenAI will now be verified by an independent expert panel, ensuring transparency and accountability.#microsoft #openai #azure #public_benefit_corporation #artificial_general_intelligence
