Microsoft and OpenAI sign new definitive agreement alongside OpenAI’s recapitalization and restructuring
October 28, 2025000
- Microsoft states it has signed a new definitive agreement with OpenAI to strengthen long-term partnership and set stage for future success
- OpenAI restructures as a public benefit corporation under nonprofit OpenAI Foundation governance; transaction values OpenAI at ~$500 billion; Microsoft stake ~27% valued about $135 billion
- Revised partnership terms include independent panel to validate any AGI milestone; Microsoft retains rights to OpenAI products and models post-AGI until at least 2032 under the new agreement
- OpenAI commits to an additional ~$250 billion cloud computing contract with Microsoft Azure under the reworked deal
- Exclusivity relaxes: OpenAI permitted to work with other partners; Microsoft relinquishes prior right of first refusal and gains no rights to OpenAI consumer hardware products