Microsoft and OpenAI have entered a new phase of their long-standing partnership with a definitive agreement valued at around $135 billion. The updated deal supports OpenAI’s transition into a public benefit corporation (PBC) and recapitalization, which Microsoft says will “set the stage for long-term success” for both organizations. The technology giant’s investment represents roughly a 27% stake in OpenAI Group PBC on an as-converted diluted basis.
The agreement preserves the core elements that have defined their collaboration since 2019, including Microsoft’s exclusive access to OpenAI’s intellectual property and Azure API integration until the development of Artificial General Intelligence (AGI). Once AGI is declared by OpenAI, its verification will be conducted by an independent expert panel. Microsoft’s IP rights for models and products have been extended through 2032 and will include post-AGI systems with safety guardrails in place.
Several new provisions introduce greater operational independence for both sides. OpenAI can now develop products jointly with third parties, while Microsoft is permitted to pursue AGI research independently. API products co-developed by OpenAI will remain exclusive to Microsoft’s Azure cloud platform, though non-API products may operate on other providers. Microsoft’s rights will now exclude OpenAI’s consumer hardware, marking a shift from earlier agreements.
As part of the revised structure, OpenAI has contracted to purchase an additional $250 billion in Azure cloud services. Microsoft, however, will no longer hold a right of first refusal to provide compute resources. The deal also allows OpenAI to offer API access to U.S. government national security clients and to release open-weight models that meet defined capability criteria.
Both companies said the renewed partnership deepens their commitment to responsible AI development while expanding commercial opportunities. “This agreement builds on our foundation and positions us to continue building products that meet real-world needs,” the companies said in a joint statement.
Source: OpenAI