Microsoft and OpenAI Restructure Partnership, Lifting Fundraising Limits for ChatGPT Maker

In a major shift for the artificial intelligence landscape, Microsoft and OpenAI have finalized a new agreement that allows the ChatGPT creator to restructure as a Public Benefit Corporation (PBC). The deal removes previous fundraising limits and marks a new chapter for OpenAI — one that gives CEO Sam Altman more control and flexibility in steering the company’s AI-driven future.

A New Structure for OpenAI

Under this restructured setup, OpenAI will now operate as OpenAI Group PBC, gaining the freedom to raise capital and expand without being bound by the older Microsoft partnership terms. The 2019 agreement had granted Microsoft major rights over OpenAI’s technology in exchange for its massive Azure cloud computing services — but that became restrictive once ChatGPT exploded in popularity in 2022.

Even after this restructuring, Microsoft remains a crucial partner, holding a 27% stake in OpenAI worth around $135 billion. Since 2019, Microsoft has invested $13.8 billion in OpenAI and will continue to benefit from ongoing revenue sharing and joint AI research partnerships.

Sam Altman Retains Leadership Without Equity

OpenAI confirmed that Sam Altman will not receive any equity in the newly formed company. His salary remains at around $76,000 per year. Contrary to speculation, OpenAI has no plans for an IPO at this stage.

This decision comes after the internal conflict in late 2023 when Altman was temporarily ousted from the company. The incident exposed flaws in OpenAI’s hybrid nonprofit structure. The new PBC format aims to simplify governance while maintaining oversight through the OpenAI Foundation, which controls about 26% of OpenAI Group.

Microsoft’s $4 Trillion Comeback

Following the announcement, Microsoft’s shares rose 2.1%, pushing its market capitalization above $4 trillion again. The tech giant continues to play a vital role in AI infrastructure, especially through its Azure platform.

OpenAI will continue leveraging Azure cloud services under a $250 billion cloud contract, but Microsoft’s exclusive right to provide computing services has been lifted — allowing OpenAI to explore new collaborations.

AGI and the Future of AI Collaboration

Under the new agreement, both companies will remain closely tied until at least 2032. Microsoft will retain rights to certain OpenAI products and AI models, including those that may reach Artificial General Intelligence (AGI) — the milestone where AI matches human-level intelligence.

An independent panel will determine when AGI is achieved, at which point specific revenue-sharing terms may change. According to Bret Taylor, Chair of the OpenAI Foundation, “OpenAI has completed its recapitalization, simplifying its corporate structure. The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.”

Industry Experts React

“The new setup clarifies ownership and funding rights, providing a more transparent investment path,” said Gil Luria, Head of Technology Research at DA Davidson.

Adam Sarhan, CEO of 50 Park Investments, added, “While OpenAI still faces scrutiny over transparency and AI safety, this structure offers a clearer path forward for both innovation and accountability.”

The Road Ahead for OpenAI

With over 800 million weekly ChatGPT users, OpenAI continues to lead the global AI market. In early 2025, the company expanded its innovation footprint by acquiring Jony Ive’s startup, io Products, for $6.5 billion.

This restructuring reinforces OpenAI’s independence while keeping Microsoft as a strategic ally — ensuring both companies remain at the center of the world’s AI revolution.