OpenAI and Microsoft have signed a fresh definitive agreement that streamlines their long‑standing collaboration. The deal recasts OpenAI as a public benefit corporation and includes a recapitalization that values Microsoft’s holding at roughly $135 billion, giving the tech giant about 27 % of the diluted equity. Both firms see the pact for future generative AI breakthroughs.

Under the new terms, Microsoft retains exclusive IP rights to OpenAI’s frontier models and Azure API access until an independent panel confirms the arrival of artificial general intelligence (AGI). Those rights now extend through 2032 and cover post‑AGI models, while research‑specific IP expires either at AGI verification or in 2030, whichever comes first. Microsoft may also commercialize safety‑enhanced versions of those models for enterprise customers.

The agreement also obliges OpenAI to purchase an incremental $250 billion of Azure services, though Microsoft no longer holds a right of first refusal on compute. OpenAI can now serve US national‑security customers on any cloud, release open‑weight models that meet capability thresholds, and co‑develop products with third parties, while Azure remains the exclusive host for new API offerings. The expanded cloud flexibility aims to attract wider AI developers and institutional buyers.