Microsoft Corporation’s investment in OpenAI has been revalued at around $135 billion following a major recapitalisation and restructuring of the artificial intelligence firm’s corporate structure. The move strengthens Microsoft’s long-term partnership with OpenAI while placing governance under enhanced nonprofit oversight.
Revised Ownership Structure
Under the new arrangement, Microsoft holds approximately 27% of OpenAI Group PBC on an as-converted diluted basis, inclusive of all investors. Previously, Microsoft’s ownership stood at 32.5% in OpenAI’s for-profit entity before recent funding rounds adjusted the shareholding mix.
The Role of the OpenAI Foundation
The OpenAI Foundation, formerly known as OpenAI Nonprofit, will remain the controlling entity responsible for ensuring the company’s mission stays focused on developing safe and beneficial artificial general intelligence (AGI). The foundation holds equity in the for-profit division valued at around $130 billion, maintaining a balance between commercial growth and ethical AI development.
Governance and Strategic Realignment
This restructuring follows months of industry scrutiny regarding OpenAI’s governance and its balance between profit motives and nonprofit principles. The new framework gives the foundation a clearer oversight role and direct access to resources that can fuel long-term research and innovation.
Strengthening the Microsoft–OpenAI Partnership
The revised corporate setup reaffirms Microsoft’s strategic importance as OpenAI’s principal technology and cloud partner. It is expected to bolster collaboration in AI development, particularly across areas such as Azure AI, Copilot, and enterprise AI solutions, while boosting investor confidence in OpenAI’s transparency and governance model.
Summary:
Microsoft’s investment in OpenAI is now valued at $135 billion after a major restructuring that reduces its stake to 27% while strengthening nonprofit oversight through the OpenAI Foundation. The new governance model aims to balance profitability with responsible AI development, reinforcing Microsoft’s role as a key technology partner in OpenAI’s future growth and research efforts.
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