Microsoft and OpenAI have extended their partnership until 2032, with Microsoft holding a $135 billion stake, representing about 27% ownership in the newly formed OpenAI Group Public Benefit Corporation (PBC). This new agreement builds on their collaboration since 2019, reinforcing Microsoft’s exclusive IP rights and Azure API exclusivity until Artificial General Intelligence (AGI) is achieved, while allowing both companies to independently pursue innovation and growth.
Key Partnership Details and Changes
- Microsoft supports OpenAI’s transition to a public benefit corporation and recapitalization.
- Microsoft’s investment stake is approximately $135 billion, about 27% on a diluted basis including all owners.
- OpenAI remains Microsoft’s frontier model partner, preserving exclusive IP rights and Azure API exclusivity until AGI.
- An independent expert panel will verify OpenAI’s declaration of achieving AGI.
- Microsoft’s IP rights for models and products extend through 2032, including post-AGI models with safety guardrails.
- Research IP rights (confidential development methods) remain with Microsoft until AGI verification or 2030, excluding model architecture, weights, inference code, and data center hardware/software IP, which Microsoft retains.
- Microsoft’s IP rights now exclude OpenAI’s consumer hardware.
- OpenAI can jointly develop some products with third parties; API products with third parties remain exclusive to Azure, while non-API products can be served on any cloud.
- Microsoft can independently pursue AGI alone or with partners.
- If Microsoft uses OpenAI’s IP to develop AGI before its declaration, models must comply with higher compute thresholds.
- The revenue share agreement continues until AGI verification, with payments spread over a longer period.
- OpenAI has committed to purchasing an additional $250 billion in Azure services but Microsoft no longer has first refusal rights as OpenAI’s compute provider.
- OpenAI can provide API access to U.S. government national security customers regardless of cloud provider.
- OpenAI can release open weight models that meet capability criteria.
Both companies are positioned to continue developing impactful AI products and create new opportunities while maintaining safety and innovation standards.
