Microsoft Secures 27% Stake in OpenAI as It Converts to Public Benefit Corporation

OpenAI has reorganized into a public benefit corporation, a move designed to expand its capital-raising capabilities while maintaining its social mission of developing safe and broadly beneficial artificial intelligence. As part of this restructuring, Microsoft has acquired a 27% stake in the new entity, valuing OpenAI at approximately $135 billion, according to The Wall Street Journal.

The partnership extends Microsoft's access to OpenAI's core models and technology for another seven years, until 2032, and includes a commitment from OpenAI to spend $250 billion on Microsoft's Azure cloud services over the collaboration's lifetime. This deepens the financial and operational ties between the two companies, with Microsoft retaining influence over one of the world's leading AI developers.

Under the new structure, the OpenAI nonprofit will hold around $130 billion in the for-profit entity, and Microsoft's previous default cloud provider rights have been removed. However, API products must remain exclusive to Azure, while non-API products can use other cloud providers. The deal also stipulates that if OpenAI claims to achieve artificial general intelligence (AGI), it must be verified by a third-party panel, and Microsoft's access to research will end upon AGI confirmation or in 2030, whichever comes first.

The reorganization has drawn criticism from Elon Musk, a co-founder of OpenAI who left in 2018, accusing the company of prioritizing profit over its original mission of open research. Meanwhile, OpenAI's CEO Sam Altman will not receive equity in the new structure, a detail that has raised eyebrows in investment circles.

Beyond corporate changes, the news highlights AI's expanding role in finance, including crypto trading. Recent research compared AI models like Grok (developed by X) and DeepSeek in simulated crypto trading on decentralized exchange Hyperliquid, finding they outperformed ChatGPT and Google's Gemini in profitability metrics. This signals growing competition in AI-driven financial tools, with models tested starting from $200 in simulated capital scaling to $10,000 per model.