Home / Business and Economy / Microsoft Secures $135B Stake in OpenAI, Expands AI Partnership
Microsoft Secures $135B Stake in OpenAI, Expands AI Partnership
28 Oct
Summary
- Microsoft now holds 27% ownership in OpenAI
- New deal extends Microsoft's exclusive rights to OpenAI models until 2032
- OpenAI commits to $250B in Azure services purchases
On October 28, 2025, Microsoft announced a new definitive agreement with OpenAI that significantly strengthens their existing partnership. Under the terms of the deal, Microsoft now holds a roughly 27% ownership stake in OpenAI Group PBC on an as-converted diluted basis, valuing the tech giant's position at approximately $135 billion.
The updated agreement extends Microsoft's position as OpenAI's exclusive frontier model partner, granting the company extended intellectual property rights through 2032. Crucially, these rights will now include models developed after Artificial General Intelligence (AGI) is achieved, with appropriate safety measures in place.
Additionally, the deal introduces several key changes. OpenAI has committed to purchasing an additional $250 billion in Azure services from Microsoft, though the tech giant will no longer have first refusal rights as OpenAI's compute provider. The partnership modifications also allow OpenAI greater flexibility to jointly develop products with third parties and provide API access to U.S. government national security customers, regardless of cloud provider.
This restructured agreement comes after months of negotiations between the two companies, solidifying Microsoft's position as a dominant player in the rapidly evolving AI landscape.
