After months of negotiations, Microsoft and OpenAI have finalized a new strategic partnership that gives the tech giant a 27 per cent stake—worth around 135 billion dollars—in the ChatGPT developer. As part of the agreement, OpenAI will transition into a public-benefit corporation, a move expected to shape the company’s governance and open the door to a potential IPO in the coming years.
According to OpenAI’s announcement, Microsoft previously held a 32.5 per cent stake in the company’s profit-oriented division before the latest financing rounds. Under the new structure, the two companies will continue their collaboration while allowing for greater operational independence and innovation on both sides.
Microsoft remains OpenAI’s exclusive partner for advanced artificial intelligence models and retains intellectual property rights and Azure API exclusivity until at least 2032, or until an independent panel verifies that OpenAI has achieved artificial general intelligence (AGI). The new deal extends these rights by two years beyond the original 2030 deadline.
However, Microsoft will no longer hold intellectual property rights to OpenAI’s consumer hardware products. In turn, OpenAI has committed to purchasing 250 billion dollars worth of Azure cloud services, while Microsoft gives up its right of first refusal on OpenAI’s computing capacity.
Another key change allows OpenAI to provide API access to US government national security clients, regardless of their cloud provider. The API (Application Programming Interface) enables software systems to communicate and exchange data efficiently.
News of the deal sent Microsoft shares up by 4 per cent, signalling investor confidence in the renewed alliance. Analysts view the restructuring as a major step toward OpenAI’s long-anticipated stock market debut, potentially making it one of the most valuable AI companies in the world.
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