Microsoft and OpenAI's new $500B deal shakes up AI landscape
Microsoft and OpenAI have reworked their deal—OpenAI's for-profit arm is now called OpenAI Group PBC, valued at a massive $500 billion.
Microsoft owns 27% (worth $135 billion), but the nonprofit OpenAI Foundation still retains control.
Microsoft retains exclusive rights to OpenAI's tech
Microsoft keeps exclusive rights to OpenAI's tech and Azure API access through to 2032, plus early looks at research (end date not specified in source).
In exchange, OpenAI will use $250 billion of Microsoft's Azure cloud but can also shop around with other providers.
The cool part: OpenAI can now launch safer, open-weight AI models anywhere—even for US national security customers—and has more freedom to grow fast.
Meanwhile, Microsoft is branching out too, bringing Anthropic's Claude into Microsoft 365 Copilot as it ends its exclusive cloud grip on OpenAI.
This partnership will set the stage for next-gen tools
This move shakes up who controls the future of AI—and makes sure big tech isn't locking each other out.
If you're curious about where your favorite apps or next-gen tools come from, this partnership is setting the stage for what happens next in AI.