Microsoft made its first investment in Sam Altman's OpenAI in 2019. It now holds a 27% in OpenAI's for-profit business.

Microsoft and OpenAI unveil a deal extending IP rights, adding independent AGI verification, and giving both sides more freedom while maintaining Azure ties.

Microsoft and OpenAI announced a restructuring deal on Tuesday that frees the ChatGPT maker to move away from its nonprofit roots and likely go public so it can finance CEO Sam Altman's ambitious plans to develop data centers and cutting-edge technology.

OpenAI has become a public benefit corporation, giving Microsoft a 27% stake and long-term access to research methods

The deal removes a major constraint on raising capital for OpenAI, which was founded as a nonprofit AI safety group.

Microsoft and OpenAI announced the long-awaited details of their new partnership agreement Tuesday morning — with concessions on both sides that keep the companies aligned but not in lockstep as they move into their next phases of AI development.

The nonprofit arm, now called the OpenAI Foundation, will have a $130 billion stake in the for-profit enterprise.

OpenAI’s conversion to a for-profit structure is ready, along with a new deal thatshrinks Microsoft’s ownership stake and defines AGI.

Uncertainty around Microsoft's future relationship with OpenAI had been a cloud over the stock until the companies announced on Tuesday new details around their arrangement. As per a new agreement, Microsoft's stake in OpenAI will have a valuation of about $135 billion.