Microsoft Maintains 27% Stake in OpenAI as Companies Restructure $135 Billion AI Partnership

Microsoft and OpenAI have announced a comprehensive restructuring of their strategic artificial intelligence partnership, providing both companies with enhanced autonomy while preserving their collaborative relationship.

Under the new arrangement, Microsoft will maintain approximately 27% ownership in the restructured OpenAI, an investment valued at around $135 billion, as OpenAI transitions to a public benefit corporation structure.

OpenAI has committed to purchasing $250 billion in Azure cloud services from Microsoft, though Microsoft no longer holds exclusive provider rights. The agreement extends Microsoft's intellectual property rights for OpenAI's models and products through 2032.

"As we enter the next phase of this partnership, we've signed a new definitive agreement that builds on our foundation, strengthens our partnership, and sets the stage for long-term success for both organizations," the companies stated jointly.

Microsoft has been a principal investor in the ChatGPT developer as the tech industry experiences significant investment in generative AI technology, which Silicon Valley believes will revolutionize numerous aspects of daily life.

However, OpenAI, under CEO Sam Altman's leadership, has increasingly sought to diversify its partnerships with other companies, raising questions about the sustainability of its exclusive arrangement with Microsoft.

The partnership originated in 2019 when Microsoft invested $1 billion in the then-small AI research organization founded in 2015 by technology leaders including Elon Musk.

Microsoft expanded its commitment in 2021 with additional funding, followed by a reported $10 billion investment in January 2023 after the tremendous success of OpenAI's ChatGPT, which launched in November 2022.

This collaboration has transformed both entities. OpenAI evolved from a research laboratory into one of the world's most valuable startups, while Microsoft gained a leading position in AI development, integrating OpenAI's technology—rebranded as Copilot—across its product portfolio from Bing search to Office applications.

The relationship experienced turmoil in November 2023 when OpenAI's board briefly dismissed Altman, only to reinstate him days later following employee protests and Microsoft's intervention.

This incident revealed tensions regarding OpenAI's governance and strategic direction as it balanced its nonprofit origins with commercial aspirations. The new agreement with Microsoft is part of OpenAI's corporate restructuring aimed at preventing future instability and attracting additional investors.

The new arrangement provides OpenAI greater flexibility, including the ability to develop products with third parties and deploy some services on competing cloud platforms.

Meanwhile, Microsoft retains the freedom to independently pursue artificial general intelligence (AGI) development alone or with other partners—a capability that matches or exceeds human intelligence and was a central element in previous agreements.