In a significant shake-up within the global artificial intelligence sector, Microsoft and OpenAI have finalized a restructuring agreement that transforms the ChatGPT creator into a public benefit corporation (PBC) — a hybrid structure that blends profit motives with public interest obligations.
The new arrangement, announced on Tuesday, marks a major evolution in the partnership between the two companies, ending years of tension over control, financing, and technological rights. The restructuring effectively grants OpenAI greater operational and financial independence, while preserving Microsoft’s role as a key stakeholder and partner.
Under the new structure, OpenAI Group PBC will be controlled by the nonprofit OpenAI Foundation, which retains a 26% ownership stake and oversight powers. Microsoft will hold 27% of the restructured company, maintaining its influence but losing several exclusive privileges granted under previous agreements.
The move eliminates key restrictions that have constrained OpenAI since its 2019 deal with Microsoft, which tied most of its research and commercial operations to the tech giant’s Azure cloud infrastructure. That arrangement, while essential to the company’s early growth, became increasingly contentious following ChatGPT’s explosive success.
“OpenAI has completed its recapitalization, simplifying its corporate structure,” said Bret Taylor, chair of the OpenAI Foundation’s board. “The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.”
Altman’s leadership strengthened, but without ownership
Despite speculation, CEO Sam Altman will not receive equity in the restructured company, and his salary remains unchanged at approximately $76,000 per year. The company also clarified it has no current plans for a public listing.
The restructuring gives Altman and the OpenAI board greater latitude to pursue commercial partnerships, product expansion, and large-scale AI research — without direct investor interference.
Microsoft’s $13.8 billion investment in OpenAI now translates to a stake valued at roughly $135 billion, implying a tenfold return. Microsoft shares climbed over 2% following the announcement, pushing its market value above $4 trillion.
Long-term partnership continues
Although OpenAI gains new autonomy, the companies’ partnership remains deeply intertwined. Microsoft retains rights to OpenAI’s key products and models until at least 2032 and will continue to share approximately 20% of OpenAI’s revenues for several years.
The firms also confirmed a new agreement under which OpenAI will purchase $250 billion worth of Azure cloud services, replacing Microsoft’s former right of first refusal as its compute provider.
Industry analysts view the restructuring as a critical step toward clarifying OpenAI’s ownership and governance structure, which has faced scrutiny since Altman’s temporary ouster in late 2023 revealed tensions between nonprofit ideals and corporate realities.
Broader implications for AI governance
The new PBC model gives OpenAI flexibility to raise capital from diverse investors while maintaining its original mission — to ensure that artificial intelligence benefits humanity. It also establishes clearer oversight mechanisms, including an independent panel to verify when OpenAI achieves artificial general intelligence (AGI), a milestone that could reshape the global technology landscape.
“OpenAI still faces ongoing scrutiny around transparency, data usage, and safety oversight,” said Adam Sarhan, CEO of 50 Park Investments. “But overall, this structure provides a clearer path forward for innovation and accountability.”
Gil Luria, head of technology research at DA Davidson, added that the restructuring “resolves the longstanding ambiguity of OpenAI’s nonprofit status and settles ownership rights with Microsoft, paving the way for greater fundraising and clarity.”
Expanding AI ecosystem
With more than 800 million weekly ChatGPT users and growing global influence, OpenAI’s transformation into a PBC signals its intent to evolve from a research lab into a diversified technology powerhouse.
Earlier this year, OpenAI acquired Jony Ive’s design startup, io Products, in a $6.5 billion deal, underscoring its ambition to move into consumer hardware — an area now fully independent of Microsoft’s oversight.
As the AI race accelerates worldwide, the Microsoft–OpenAI realignment marks not just a corporate milestone but a defining moment in how the next generation of artificial intelligence will be governed, financed, and deployed.