Microsoft and OpenAI have finalized a new agreement that paves the way for the ChatGPT maker to transition into a public-benefit company valued at around $500 billion. The restructuring will redefine the partnership between the two firms, ensuring continued collaboration in cloud computing and artificial intelligence through 2032.

Under the revised arrangement, Microsoft will maintain roughly a 27% ownership stake in OpenAI, reaffirming its long-term commitment to the AI company. The deal allows OpenAI to modify its governance structure, shifting from a nonprofit-controlled model to a public-benefit corporation—designed to balance profitability with ethical and societal goals. This move is expected to enhance operational flexibility, attract fresh capital, and enable greater transparency as OpenAI scales its global footprint.

The restructuring follows months of regulatory review and internal discussions about OpenAI’s ownership and governance. The company, led by CEO Sam Altman, has grown rapidly since the launch of ChatGPT in 2022, positioning itself at the forefront of the global AI race. With this new corporate model, OpenAI aims to maintain its mission-driven ethos while improving accountability to partners, investors, and the public.

Microsoft’s role in the partnership remains pivotal, with Azure continuing as the exclusive cloud provider for OpenAI’s products and research infrastructure. Analysts believe the updated framework could also open doors for deeper product integrations, expanding the use of OpenAI models across Microsoft’s suite of enterprise and developer tools.

The deal reinforces the growing convergence between major tech firms and AI innovators, as governments and investors alike push for greater regulatory clarity and ethical AI deployment. For Microsoft, it cements a strategic edge in enterprise AI, while OpenAI secures the stability needed to drive the next phase of generative AI evolution.