San Francisco: Microsoft and OpenAI have reached a new agreement that will reshape their long-standing partnership, allowing OpenAI to restructure its business and operate with greater financial and operational freedom. The new deal values OpenAI at around 500 billion dollars, marking one of the largest valuations in the global technology sector.
The agreement transforms OpenAI into a public benefit corporation controlled by a nonprofit entity. Under the new structure, Microsoft will hold approximately 27 percent of OpenAI’s for-profit arm, giving it continued access to OpenAI’s technology and artificial intelligence models through at least 2032. This move ensures Microsoft’s influence in OpenAI’s future developments, including any progress toward artificial general intelligence.
According to details from OpenAI’s own statement, Microsoft will maintain exclusive rights to use OpenAI’s frontier models on its Azure cloud platform, while OpenAI will now be able to collaborate with other cloud providers for specific products. The agreement also includes a significant commitment from OpenAI to purchase an additional 250 billion dollars’ worth of Azure services in the coming years.
The restructuring removes earlier funding restrictions that had limited OpenAI’s ability to raise capital and expand its partnerships outside Microsoft. Analysts believe this change will open the door for new investors and possibly pave the way for a future public listing of OpenAI’s for-profit unit.
Reports from several business outlets indicate that Microsoft’s stake in OpenAI, now valued at about 135 billion dollars, underscores the deep financial and strategic ties between the two companies. OpenAI, meanwhile, faces major financial obligations, including plans to develop massive data center infrastructure estimated at around 30 gigawatts over the next few years.
While the agreement offers OpenAI greater independence, it also raises questions about governance and oversight. Critics argue that the nonprofit arm’s control might be more symbolic than practical, given Microsoft’s significant role and influence. The arrangement also introduces an independent expert panel responsible for verifying any declaration by OpenAI that it has achieved artificial general intelligence.
Industry experts see the deal as a landmark in the evolution of artificial intelligence partnerships, giving OpenAI the flexibility to grow while maintaining Microsoft’s strategic involvement. However, questions remain about how the two organizations will balance innovation, accountability, and public interest as they pursue the next phase of AI development.
The restructuring is expected to accelerate OpenAI’s global expansion and attract new funding, but it also places the company under closer regulatory scrutiny as governments worldwide evaluate the implications of large-scale AI advancements.