Microsoft and OpenAI have resolved a major dispute that had constrained OpenAI’s funding since 2019. The deal comes just before Microsoft’s earnings and enables OpenAI’s complete restructuring.
OpenAI has finalized its controversial transition to a for-profit structure while striking a new deal with Microsoft. The nonprofit foundation now holds equity valued at approximately $130 billion in the newly formed public benefit corporation.
Microsoft now holds a 27% stake in OpenAI following a major corporate restructuring that values the AI company at $500 billion. The nonprofit foundation retains control while new partnership terms extend through 2032. This deal fundamentally reshapes the AI industry’s power structure.
