Microsoft and OpenAI Extend Partnership with New Deal to 2032

What happened

Microsoft and OpenAI have entered a new phase of their partnership with a definitive agreement that includes OpenAI’s recapitalization as a Public Benefit Corporation (PBC). Microsoft holds a roughly 27% stake in OpenAI Group PBC, valued at about $135 billion. The agreement extends Microsoft’s exclusive intellectual property (IP) rights and Azure API exclusivity through 2032, including post-Artificial General Intelligence (AGI) models.

Why it matters

• The extended IP rights through 2032 provide Microsoft long-term certainty for its AI products and Azure platform integration.
• The PBC structure aims to balance OpenAI’s mission focus with scalable growth and clearer governance.
• Independent verification of AGI status introduces oversight and allows both companies to pursue AGI development with defined limits.

Key facts

1. 1. Microsoft’s investment in OpenAI Group PBC is valued at approximately $135 billion, representing about 27% ownership on an as-converted diluted basis.
2. 2. Microsoft’s exclusive IP rights and Azure API exclusivity are extended through the year 2032, including for post-AGI models.
3. 3. Prior to the recapitalization, Microsoft held a 32.5% stake in OpenAI’s for-profit entity on an as-converted basis.