OpenAI has obtained a new lease on life.

The cash-burning AI biz on Tuesday announced an agreement with Microsoft that will allow it to form a public benefit corporation and recapitalize, meaning it will be more attractive to investors.

The restructuring deal caps more than 18 months of management turmoil and negotiation, unconvincing regulatory saber-rattling, and legal challenges . Under the new structure, Microsoft will own roughly 27 percent of OpenAI Group PBC, a share worth about $135 billion given current starry-eyed market assumptions.

That's roughly a 10x return on Microsoft's $13.8 billion investment in OpenAI . Markets now value the AI upstart at about $500 billion, despite it never producing a profit.

Under the terms of the deal, OpenAI has committed to spend $250 billion o

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