Microsoft and OpenAI have entered a new phase of their long-running partnership with the signing of a definitive agreement that updates governance, ownership structure and intellectual property terms while preserving Microsoft’s status as OpenAI’s primary frontier-model partner. The revised arrangement follows Microsoft’s support for the OpenAI board’s plan to form a public benefit corporation (PBC) and recapitalize the organization.

Following recapitalization, Microsoft now holds an investment in OpenAI Group PBC valued at approximately $135 billion, representing roughly 27 percent on an as-converted diluted basis across all ownership classes, including employees, investors and the OpenAI Foundation. Prior to OpenAI’s recent funding rounds, Microsoft’s stake stood at 32.5 percent on a

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