Microsoft and OpenAI Restructure Partnership in a $135B Valuation Deal
Microsoft and OpenAI have recently concluded a significant restructuring of their partnership, resulting in Microsoft acquiring a 27% ownership stake in the newly formed OpenAI Group Public Benefit Corporation. This stake is estimated to be worth approximately $135 billion. The deal, which was announced on October 28, 2025, brings an end to nearly a year of negotiations and provides a clear path forward for the future AI strategies of both companies.
Under the terms of the revised agreement, Microsoft will retain exclusive access to OpenAI’s technology until 2032. This includes models that achieve Artificial General Intelligence (AGI). However, any AGI declaration by OpenAI will now need to be verified by an independent expert panel, thereby introducing an element of external oversight to this critical milestone.
Microsoft’s intellectual property rights have been extended through 2032 and now encompass post-AGI models, provided they come with appropriate safety measures. The restructuring also introduces new flexibility for both companies.
- OpenAI has committed to purchasing an additional $250 billion of Azure services. However, Microsoft no longer holds exclusive rights as its compute provider.
- Microsoft can now independently pursue AGI development with third parties.
- OpenAI now has the ability to serve US government national security customers on any cloud platform and release open-weight models that meet specific criteria.
Source: Microsoft Blog