Overview
- OpenAI completed its recapitalization, forming OpenAI Group PBC under the control of the OpenAI Foundation with an implied valuation near $500 billion.
- Microsoft holds roughly 27% of the new entity (about $135 billion) under an updated deal featuring a $250 billion Azure services commitment and IP and commercial rights that extend until independent AGI verification or 2032.
- The revised partnership removes Microsoft’s right of first refusal on cloud services, while an expert panel must validate any OpenAI claim that it has reached AGI before certain terms change.
- Delaware Attorney General Kathy Jennings said she did not oppose the plan, concluding a lengthy review that clears a key regulatory hurdle and enables OpenAI to raise new capital.
- Separately, PayPal will integrate its wallet for in‑chat purchases in ChatGPT starting next year, and the company raised its 2025 earnings guidance and announced a quarterly dividend as its shares gained.