Microsoft and OpenAI have renewed their landmark partnership with a new agreement valued at $135 billion, marking the next phase in their joint pursuit of responsible, large-scale AI advancement.
The deal formalizes Microsoft’s backing of OpenAI’s restructuring into a Public Benefit Corporation (PBC) and cements its 27% ownership stake, making it OpenAI’s largest strategic partner.
Under the updated terms, Microsoft remains OpenAI’s exclusive frontier model partner, retaining key IP and Azure API rights until Artificial General Intelligence (AGI) is achieved. The new framework, however, grants both companies more independence and flexibility.
Key updates include:
- Independent verification of AGI achievement
- Extended IP protections through 2032, covering post-AGI models
- Freedom for OpenAI to co-develop certain non-API products with third parties
- Microsoft’s right to independently pursue AGI projects
- $250 billion Azure expansion commitment from OpenAI
- Permission for OpenAI to serve U.S. national security clients and release approved open-weight models
The renewed alliance preserves deep integration across ChatGPT, Copilot, and Azure-powered tools while introducing clearer boundaries and safeguards for AGI-era development.
Together, Microsoft and OpenAI aim to balance innovation, safety, and transparency, shaping the global trajectory of advanced AI in the years ahead.