Overview
- OpenAI converted its commercial arm into a Public Benefit Corporation controlled by the OpenAI Foundation, which holds 26% and retains control through enhanced voting rights.
- Under the pact, OpenAI commits to purchase $250 billion of Azure services, while Microsoft gives up its right of first refusal on compute as OpenAI gains limited multi‑cloud flexibility for non‑API products.
- Microsoft’s intellectual property rights now run through 2032 and cover models even after any verified AGI milestone, with explicit exclusions for OpenAI’s consumer hardware and defined limits on research IP.
- Any declaration that OpenAI has achieved AGI must be confirmed by an independent expert panel, replacing a prior trigger tied to a $100 billion financial metric, and Microsoft may pursue its own AGI work under set conditions.
- Employees and investors hold about 47% of the OpenAI Group, Microsoft shares rose enough to briefly push its market value above $4 trillion, and Elon Musk continues a court effort to block the reorganization as Delaware raised no objections.