OpenAI restructures as Microsoft acquires 25 percent stake in ChatGPT creator through new agreement

Microsoft has solidified its partnership with OpenAI through a new agreement, allowing OpenAI to restructure as a public benefit corporation. This deal indicates that Microsoft will own approximately 27 percent of OpenAI, valued at around US$135 billion.

Details of the Agreement

• Microsoft’s stake in OpenAI is set at 27 percent.
• The value of Microsoft’s investment in OpenAI is approximately US$135 billion.
• OpenAI will purchase US$250 billion worth of Azure cloud services from Microsoft.
• Microsoft relinquished its right of first refusal for providing computing services to OpenAI.

Potential for Public Trading

This new agreement may pave the way for OpenAI to become publicly traded in the future. Microsoft’s shares rose by 4 percent following the announcement, reflecting investor confidence in this collaboration.

Previous Agreements

Under their earlier contract, Microsoft held intellectual property rights over OpenAI’s products and models until 2030, or until the achievement of artificial general intelligence. This significant change in their relationship emphasizes the evolving landscape of artificial intelligence and cloud computing.

This strategic partnership not only enhances Microsoft’s cloud portfolio but also supports OpenAI’s ambitious goals in the AI sector. The financial backing from Microsoft positions OpenAI favorably for future developments.