Microsoft has nabbed itself a 27% stake in OpenAI, as part of a huge restructuring of the artificial intelligence research institution that sees OpenAI adopt an unusual public benefit corp (PBC) style structure. The new agreement, which was signed on October 28, 2025 gives Microsoft proportional financial returns in the billions,” the company told TNW following a recapitalization that “consolidates OpenAI’s corporate structure”; while it won’t affect our sense of mission or direction, we anticipate it will be easier to work together.” “Following that funding round, Microsoft s equity in OpenAI (on a fully diluted basis) is of approximately $135 billion dollars.Editor s note: The story has been updated to clarify when Microsoft invested into OpenAI as part of its stake.
With the revamped framework, Microsoft is taking a smaller strategic stake than it once did —the company had owned 32.5% of the for-profit arm prior to its most recent round of investment — and has restructured how it will support OpenAI going forward. Equity in the public benefit company is worth around $130 billion; this will help ensure that missions related to developing beneficial AIs and long-term research are independently governed. The reorganization resolves previous governance muddles by tying commercial expansion to nonprofit control, which boosts faith among investors and clears path for OpenAI’s intended eventual public listing.
On the IP front, Microsoft will have exclusive IP access to any code it co-develops with OpenAI and Azure API exclusivity through 2032 in addition to licensing any of OpenAI’s pre-AGI models. Other clauses permit Microsoft to research AGI on its own and team up with third-parties for AI products. OpenAI also will purchase $250 million of Azure cloud services to make the service a primary platform for AI work. The new deal stipulates independent expert assessment of AGI and gives OpenAI more flexibility to offer AI services to government national security agencies outside Microsoft’s cloud.
The deal also solidifies Microsoft as by far the most significant strategic partner to OpenAI, one that sees investment at a massive scale and teams of engineers working together while adhering to governance changes that keep innovation insulated from ethical oversight. It highlights Microsoft’s commitment to leading the development of AI while fostering responsible innovation that can have broad societal impact. All in all, it’s a big win for both companies — OpenAI gains simplification of its governing process and continued access to resources, while Microsoft cements control over the $135 billion AI market as it continues to explode indiscriminately.