Microsoft to Get 27% Stake of OpenAI, AI Model Access Until 2032

Core Insights - Microsoft has entered into a new agreement with OpenAI, which includes a significant stake in OpenAI's Public Benefit Corporation (PBC) [1][2] - The partnership indicates a shift towards a for-profit model for OpenAI, which was originally established as a non-profit organization [2][3] - Microsoft holds a valuation stake of $135 billion in the PBC, which is larger than OpenAI's previous valuation of $100 billion for its philanthropic arm [3][4] Financial Implications - OpenAI has a contractual obligation to purchase $250 billion worth of Azure cloud services from Microsoft [5] - The deal allows OpenAI to jointly develop products with third parties while Microsoft retains exclusive intellectual property rights until the achievement of artificial general intelligence (AGI) [6][7] Strategic Developments - The agreement solidifies the relationship between Microsoft and OpenAI, addressing concerns about future collaboration and product development [7][8] - OpenAI is now able to source cloud services from other providers like Oracle and Google, indicating a diversification of its cloud infrastructure [6][7]