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15h ago

Microsoft Takes 27% Stake as OpenAI Becomes Public Benefit Corporation at $500 Billion

The pact locks in $250 billion of Azure spending with AGI milestones subject to independent verification.

OpenAI and Microsoft logos
Image
FILE - The OpenAI logo appears on a mobile phone in front of a computer screen with random binary data, March 9, 2023, in Boston. (AP Photo/Michael Dwyer, File)
OpenAI has completed its for-profit restructuring.

Overview

  • The restructuring values OpenAI at about $500 billion, assigning Microsoft roughly a 27% stake (~$135 billion) and the OpenAI Foundation about 26% (~$130 billion).
  • OpenAI converted its commercial arm into OpenAI Group PBC under the control of the nonprofit OpenAI Foundation, completing a long-planned recapitalization.
  • OpenAI committed to purchase $250 billion of Microsoft Azure services as Microsoft relinquished its prior right of first refusal and any rights to OpenAI consumer hardware.
  • Microsoft retains access and intellectual-property rights to OpenAI models and products through 2032, including post‑AGI models, with any AGI claim to be validated by an independent expert panel.
  • Regulators signaled no opposition, with Delaware issuing a statement of no objection and California saying it will not oppose; Microsoft shares rose about 2%–4%, and the Foundation outlined an initial $25 billion focus on health research and AI safety.