Microsoft Corp. has deepened its partnership with OpenAI, finalising a new agreement that gives the tech giant a 27% ownership stake worth about $135 billion.
The revised structure marks one of the largest AI-related corporate alliances to date, redefining how both companies will collaborate over the next decade in shaping the global artificial intelligence landscape.
Under the latest arrangement, Microsoft will retain access to OpenAI’s advanced models and technology until 2032, including systems that have achieved artificial general intelligence (AGI) benchmarks.
This access ensures Microsoft’s continued integration of cutting-edge AI tools across its ecosystem, from Azure to Copilot and beyond, maintaining its competitive edge in a rapidly evolving market that is witnessing intense innovation and consolidation.
OpenAI announced that its nonprofit entity has been renamed the OpenAI Foundation, which now holds an equity stake valued at approximately $130 billion in the company’s for-profit division.
The for-profit arm has been restructured as a public benefit corporation (PBC) and will operate under the name OpenAI Group PBC.
Under the revised ownership structure, the OpenAI Foundation will control 26% of the for-profit entity, while current and former employees and investors will collectively hold 47%.
Microsoft strengthens AI integration with long-term OpenAI access
Microsoft, which has invested more than $13 billion in OpenAI since first backing the company in 2019, said it supports the company’s recapitalization plan.
The tech giant now holds an investment in OpenAI Group PBC valued at approximately $135 billion, representing about 27% of the company on an as-converted diluted basis.
Microsoft noted that it previously held a 32.5% stake in OpenAI’s for-profit entity on an as-converted basis, excluding recent funding rounds.
The deal confirms Microsoft’s strategic intent to remain at the forefront of AI research and commercialisation.
Although the company no longer holds the right of first refusal for OpenAI compute resources, it has secured a new framework for collaboration.
OpenAI has also committed an additional $250 billion to purchase Azure services, reinforcing Microsoft’s role as the backbone of OpenAI’s cloud infrastructure.
This move is expected to bolster Microsoft’s revenue from cloud computing, particularly within the Azure segment, which has been central to its AI growth strategy and its broader ambitions across global data infrastructure.
Market reacts positively as Microsoft shares rise
Investors responded strongly to the announcement, with Microsoft shares jumping nearly 4% in early trading.
The market’s reaction reflects growing optimism around Microsoft’s positioning in the AI sector and its ability to monetise partnerships like this one.
With the new deal in place, Microsoft not only strengthens its AI footprint but also mitigates competitive risks in an increasingly crowded landscape.
The company’s stake ensures long-term influence without compromising OpenAI’s governance structure or independence, making it a model for future tech-industry partnerships.
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