Microsoft's Stake in OpenAI Valued at $135 Billion Amid Restructuring
Microsoft's stock rose following an agreement valuing its stake in OpenAI at $135 billion, as the AI firm restructures into a public benefit corporation.
Microsoft's stock increased by 2% on Tuesday, closing at $542.07, after the company reached an agreement with OpenAI that values its stake in the artificial intelligence firm at $135 billion.
OpenAI is restructuring into a public benefit corporation (PBC), a move aimed at balancing profitability with its mission to ensure AI benefits humanity. This transition is expected to facilitate OpenAI's access to capital while maintaining its non-profit oversight.
As part of the restructuring, OpenAI has committed to purchasing an additional $250 billion in Azure cloud computing services from Microsoft.
The partnership between Microsoft and OpenAI, established in 2019, remains intact under the new agreement. Microsoft continues to hold exclusive intellectual property rights and Azure application programming interface exclusivity until OpenAI achieves artificial general intelligence (AGI).
OpenAI's restructuring into a PBC is anticipated to pave the way for the company to become publicly traded in the future.
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