Microsoft Strengthens Partnership with OpenAI Through New Investment Deal

Redmond, Washington – Microsoft Corp has announced a new definitive agreement with OpenAI to enhance their ongoing partnership, initially formed in 2019. The deal allows for the formation of a public benefit corporation (PBC) and supports further recapitalization efforts.

As part of this agreement, Microsoft will hold a 27 percent stake in the OpenAI Group PBC, valued at approximately $135 billion. This investment includes all stakeholders such as employees, investors, and the OpenAI Foundation. Before recent funding rounds, Microsoft had a larger stake of about 32.5 percent in OpenAI’s for-profit entity.

This agreement maintains critical elements that have fueled the partnership, ensuring that OpenAI remains Microsoft’s primary model partner. Additionally, Microsoft retains exclusive rights to intellectual property and Azure API until the achievement of Artificial General Intelligence (AGI), as confirmed by an independent panel.

Microsoft’s IP rights for OpenAI’s models and products will be extended through 2032, while the rights pertaining to research remain effective until 2030 or until AGI is validated. As part of the agreement, OpenAI is expected to purchase an additional $250 billion worth of Azure cloud services.

Bonnie Johnson, Vice President of Strategic Partnerships at Microsoft, highlighted the significance of the partnership: “This new agreement lays the groundwork for both companies to innovate and grow together in the rapidly evolving landscape of artificial intelligence.”

Both companies are optimistic about the future and are committed to building advanced products that can meet the demands of various industries. The collaboration aims to foster innovation that benefits society as a whole.