Core Insights - Gryphon Investors has completed the sale of its portfolio company 3Cloud, a dedicated Microsoft Azure services provider, to Cognizant Technology Solutions Corporation [1] Company Overview - 3Cloud, founded in 2016 and headquartered in Chicago, Illinois, specializes in Microsoft Azure solutions, including AI enablement, modern data engineering, and Azure managed services [2][5] - The company has grown organically at over 20% per year since Gryphon's initial investment in June 2020, increasing its scale by approximately 12 times [2] Transaction Details - The transaction was initially announced on November 13, 2025, with financial terms not disclosed [1] - Gryphon was represented by Lazard for transaction advisory and Kirkland & Ellis for legal matters, while Cognizant was represented by Mayer Brown [3] Gryphon Investors Overview - Gryphon Investors is a middle-market private investment firm with over $10 billion in assets under management, focusing on sectors such as Business Services, Healthcare, and Technology Solutions [4] - The firm emphasizes forming strong partnerships with management teams to build high-quality companies and generate enduring value [4]

Core Insights - OpenAI has negotiated a new agreement allowing it to sign cloud contracts with competitors of Microsoft, waiving its first right of refusal for compute services [1] - Amazon has announced a multi-year cloud partnership with OpenAI worth $38 billion, providing access to thousands of NVIDIA GPUs for model training and inference [2] - OpenAI is expected to fulfill its cloud commitments while generating approximately $12 billion in annualized revenue, alongside a $250 billion commitment to Azure services from Microsoft [2] Group 1 - OpenAI's restructuring allows for more flexibility in cloud service agreements [1] - The partnership with Amazon Web Services will help OpenAI scale its operations significantly [2] - OpenAI's financial commitments include substantial spending on both Amazon and Microsoft cloud services [2]

Core Insights - OpenAI has completed its for-profit recapitalization, converting its for-profit arm into the OpenAI Group Public Benefit Corporation, which remains under the control of the nonprofit foundation [1][4] - Microsoft has acquired a 27% stake in OpenAI, valued at approximately $135 billion, and will maintain access to OpenAI's technology, including any AGI models verified by an independent panel, until 2032 [2][3] - The agreement has lifted previous capital restrictions and ended Microsoft's exclusive rights to OpenAI's cloud services, although OpenAI has committed to purchasing an additional $250 billion in Azure services [3] Regulatory Developments - OpenAI has cleared a significant regulatory hurdle with the Delaware Attorney General's office issuing a "statement of no objection" to the recapitalization plan [4] - California Attorney General Rob Bonta confirmed that his office would not oppose OpenAI's recapitalization, following a thorough investigation and securing concessions to ensure charitable assets are used appropriately [5] Corporate Statements - OpenAI's chair, Bret Taylor, indicated that the recapitalization was achieved after nearly a year of constructive dialogue with the attorneys general of California and Delaware, leading to several changes in the plan [6]

Guys, you know, we we uh in the last moments have gotten a couple of press releases from both OpenAI and Microsoft that are detailing the recapitalization that we've been keeping a close eye on of Open AAI. Remember, of course, one of the most important companies in the world, frankly, is Open AI, but it's a private company. It has been a notfor-profit and has been in the midst of a recapitalization to change that essentially and to become a public benefit corporation um as well as then having the open a uh ...