Microsoft Acquires 27% Stake in OpenAI Through $250 Billion Azure Agreement
Microsoft's partnership with OpenAI now includes a 27% stake, a $250 billion Azure commitment, and 20% of OpenAI’s revenue, marking a deepening integration of AI and cloud services through 2032.
Microsoft has solidified its 27% stake in OpenAI, valued at around $135 billion, under a long-term partnership extending to 2032. The deal secures Microsoft’s access to OpenAI’s AI and AGI models and includes OpenAI’s $250 billion commitment to Azure cloud services. New developments reveal Microsoft will also receive 20% of OpenAI’s revenue as part of the company’s profitable transformation. While Microsoft maintains API exclusivity for some products, OpenAI can host non-API offerings on other cloud providers, reflecting increased deployment flexibility.
- Public Benefit Corporation (PBC): A legal corporate structure that balances profit goals with a stated social or public benefit mission.
- API Exclusivity: A contractual right allowing only a specific partner or entity to access and distribute application programming interface services.
- Artificial General Intelligence (AGI): A theoretical form of AI capable of performing any intellectual task that a human being can do.