Microsoft Secures 27% Stake in OpenAI Under New $250B Azure Partnership

Key Takeaways

Microsoft’s 27% Stake: Microsoft now owns 27% of OpenAI, valued at $135B, backed by a $250B Azure deal extending IP rights to 2032.
Independent AGI Oversight: An expert panel will now verify AGI, ending OpenAI’s sole control and allowing both firms to pursue research independently.
$130B Foundation Funding: The OpenAI Foundation controls $130B in equity and will invest $25B in health and AI-safety programs.
$1.4T Expansion & Market reaction: OpenAI outlined $1.4 trillion for new data-center infrastructure, adding 30 GW of capacity, while Microsoft’s market value topped $4 trillion on renewed investor optimism.

Microsoft and OpenAI have signed a new agreement that revises the terms of their partnership, adding independent oversight for artificial general intelligence (AGI) and giving both sides greater freedom to develop and commercialize advanced systems, while keeping their collaboration anchored in Microsoft’s cloud.

The deal ends months of tensions between the companies and coincides with OpenAI’s conversion into a Public Benefit Corporation (OpenAI Group PBC) controlled by the nonprofit OpenAI Foundation, as it allows ChatGPT’s developer to raise new capital, simplify its structure, and prepare for a potential public listing, while maintaining its mission to ensure AGI benefits humanity.

Updated Terms and Stakes: $135B Valuation, 27% Microsoft Stake, $250B Azure Contract

Microsoft now holds a 27% stake in OpenAI Group PBC, valued at about $135 billion, according to the companies. The share includes employees, investors, and the Foundation. The two parties also signed a $250 billion Azure services contract, cementing Microsoft as OpenAI’s primary cloud partner even as exclusivity limits are updated.

Furthermore, the new terms extend Microsoft’s intellectual-property rights through 2032, covering models developed after AGI is verified. These rights exclude OpenAI’s consumer hardware but include post-AGI models under defined safety rules.

Additionally, research IP, such as training methods and internal systems, remains covered until 2030 or until AGI is independently verified, whichever comes first.

Under the new terms, an independent panel will decide when AGI has been achieved, eliminating a clause that once put Microsoft’s access to new models at risk. The change also ends a long-standing ban on Microsoft pursuing AGI research on its own or through external collaborations.

Revenue sharing between the companies continues until AGI is confirmed, though payments will now be spread over a longer period.

OpenAI, meanwhile, gains the right to co-develop products with third parties, release open-weight models meeting safety criteria, and serve U.S. national-security customers on any cloud provider, not just Azure.

OpenAI Foundation and Mission: $130B Equity, $25B in Global Commitments

The OpenAI Foundation, which controls the for-profit arm and holds about $130 billion in equity, will channel an initial $25 billion into global health, scientific research, and AI safety programs focused on disease prevention and resilience.

The recapitalization also grants the Foundation additional ownership as OpenAI’s value rises, ensuring that commercial success strengthens its nonprofit mission.

Meanwhile, OpenAI Group PBC will operate under the same charter, combining profit incentives with public-interest obligations.

Altman’s Expansion Plan: $1.4T Data-Center Investment, 30 GW Infrastructure Goal

According to Reuters, OpenAI CEO Sam Altman said the company’s new structure opens the way for about $1.4 trillion in data-center investments, adding roughly 30 gigawatts of capacity over the coming years. Each facility could cost as much as $50 billion, though Altman said he aims to bring that down to around $20 billion.

Altman described OpenAI’s next phase as a platform strategy that will let other companies and developers build tools and services atop its technology. “We can now take this framework we’ve built and get the whole world to build on it,” he said during a livestreamed event.

Market and Industry Reaction: $4T Microsoft Valuation

Microsoft shares briefly topped a $4 trillion market value following the announcement, highlighting investor confidence in its long-term AI plans.

Outlook: Independent Oversight, Extended Rights Through 2032, and a Clearer Path Forward

The agreement resolves long-running contractual frictions from the 2019 partnership while extending Microsoft’s rights to 2032 and removing its right of first refusal on future compute deals.

Under the new terms, both companies retain close technical ties but gain the freedom to grow independently.

Furthermore, by introducing independent AGI verification, aligning profit with public benefit, and securing long-term access and funding, the two firms have set a clearer framework for advancing next-generation AI technologies under both market discipline and public oversight.