Microsoft Corp.'s investment in OpenAI has been valued at about $135 billion following a recapitalization and restructuring of the AI startup's corporate set-up, according to updated information from the companies.

The revised pact strengthens the long-term partnership and simplifies OpenAI's governance structure while maintaining nonprofit control, the companies said.

Microsoft now holds roughly 27% of OpenAI Group PBC on an as-converted diluted basis, inclusive of all owners. Prior to the recent funding rounds, Microsoft’s stake stood at 32.5% in the for-profit entity.

OpenAI said the reorganization gives the nonprofit—now renamed the OpenAI Foundation—a more direct pathway to major resources needed as it pursues artificial general intelligence.

The foundation holds equity in the for

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