Key Highlights
- Microsoft supports OpenAI’s transition into a public benefit corporation (PBC) under a new definitive agreement.
- Microsoft’s investment of $135 billion gives it a 27 percent stake, valuing OpenAI at around $500 billion.
- OpenAI remains Microsoft’s frontier model partner with exclusive IP and Azure API rights until the arrival of artificial general intelligence (AGI).
- The agreement extends Microsoft’s IP rights through 2032 and research IP until either AGI is declared or 2030.
- OpenAI commits to purchase an additional $250 billion in Azure services, while Microsoft gives up first-refusal rights.
Microsoft has announced a major expansion of its long-term partnership with OpenAI through a new definitive agreement that supports OpenAI’s transition into a public benefit corporation (PBC). The move strengthens the structure and governance of their collaboration while solidifying Microsoft’s role in the evolution of advanced artificial intelligence technologies.
Under the new terms, Microsoft’s investment of $135 billion gives it approximately a 27 percent stake in OpenAI Group PBC, valuing the company at nearly $500 billion. The updated agreement clarifies key aspects such as intellectual property (IP) rights, research ownership, and future commercial collaborations, setting a clear roadmap for AI development and governance.
OpenAI will continue to be Microsoft’s exclusive frontier model partner, while Microsoft retains IP rights and Azure API exclusivity until the arrival of artificial general intelligence (AGI). The agreement extends Microsoft’s IP rights for models and products through 2032 and maintains research IP rights until AGI is declared or until 2030, whichever comes first.
The deal also includes a significant commitment from OpenAI to purchase an additional $250 billion worth of Azure services. In turn, Microsoft has relinquished its right of first refusal as OpenAI’s compute provider, offering OpenAI more flexibility in future collaborations.
OpenAI will gain broader freedom to develop products with third-party companies and can release open-weight models that meet established capability and safety criteria. The company will also have the ability to provide API access to U.S. national security clients across any cloud platform, expanding its operational reach
This agreement marks a pivotal step for both companies in shaping the next phase of artificial intelligence. For Microsoft, it reinforces its leadership in cloud computing and AI innovation through Azure. For OpenAI, the deal ensures stronger financial stability, governance, and independence under its new PBC structure balancing innovation with public benefit and safety objectives.
The renewed partnership is expected to accelerate progress toward responsible AI development while expanding access to advanced models and research tools across industries worldwide.