Microsoft has taken a big step in the artificial intelligence world by securing a 27% stake in OpenAI, the company behind ChatGPT.
This deal values OpenAI at around $500 billion, making Microsoft’s share worth nearly $135 billion.
The move comes as OpenAI restructures into a public benefit corporation, which enables it to raise more funds and expand partnerships with companies worldwide.
Deal Highlights
- Microsoft’s ownership: 27% of OpenAI’s for-profit division.
- OpenAI’s total valuation: Around $500 billion.
- Microsoft’s stake value: Nearly $135 billion.
- Cloud services commitment: OpenAI will spend about $250 billion on Microsoft’s Azure cloud platform over time.
- AI access rights: Microsoft retains exclusive rights to OpenAI’s advanced AI models and research until 2032.
This is one of the largest technology investments in history and strengthens Microsoft’s position as a key player in the global AI race.
What the Deal Means
- For Microsoft: It cements Microsoft’s role as a leader in artificial intelligence and cloud computing.
- For OpenAI: It gains the freedom to attract more investors, develop advanced AI safely, and grow faster.
- For the tech world: This deal shows how AI has become the most valuable and competitive field in technology.
Summary Table
| Item | Details |
|---|---|
| Microsoft’s Stake | 27% |
| OpenAI Valuation | $500 Billion |
| Value of Microsoft’s Stake | $135 Billion |
| Azure Cloud Commitment | $250 Billion |
| Rights Period for AI Models | Until 2032 |
| OpenAI Structure | Public Benefit Corporation |
Why It Matters
The deal reflects how fast the AI industry is growing and how much value companies are placing on advanced technologies like generative AI.
It also shows Microsoft’s long-term confidence in OpenAI and its vision to safely develop artificial general intelligence (AGI).
What to Watch Next
- Will OpenAI go public in the coming years?
- How will regulators react to Microsoft’s deep involvement?
- How will this affect Google, Amazon, and other AI competitors?
