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Published on
October 29, 2025
5 min read
Microsoft Gets 27% in OpenAI Group Corporation in New Restructured Deal
In Focus
- Microsoft and OpenAI have agreed on a restructuring deal
- The deal allows OpenAI to convert into a for-profit company
- Microsoft will hold a 27% in OpenAI Group PBC
Microsoft and OpenAI have reached a restructuring deal that allows the AI startup to restructure into a for-profit. According to Reuters, the AI startup will likely go public with the Microsoft-OpenAI restructuring deal to finance its AI ambitions.
Deal Paves the Way for Future OpenAI IPO
The October 2025 Microsoft OpenAI deal positions the $500 billion firm as a public benefit corporation (PBC).
The PBC will be controlled by the nonprofit OpenAI Foundation. Microsoft’s deal 2025 places OpenAI on the path to IPO, enabling it to publicly raise funds needed to build and train AI models in future.
OpenAI plans to shift from a product firm into a platform that allows other companies to build their services, tools, and businesses on its technology. Earlier this month, OpenAI expanded the ChatGPT Go plan in Asia.
“We can now take this technology and this user base and this sort of framework we’ve built and get the whole world to build amazing new companies and services and applications on top of it,” Altman said.
OpenAI’s restructuring with Microsoft is among the many processes the AI startup has been undertaking internally. These moves have increased investor confidence and attracted business partners, including NVIDIA. OpenAI recently signed a chip deal with AMD, giving it the option of getting a 10% stake in the chipmaker.
How Much Stake Does Microsoft Retain in OpenAI After the Deal?
Microsoft and OpenAI have been renegotiating the billion-dollar deal since May 2025. The latest agreement outlines Microsoft’s stake in OpenAI and the new deal terms. Under the deal, Microsoft will have a 27% stake in OpenAI Group PBC, equivalent to $135 billion.
The software giant will also maintain its status as a significant player in OpenAI’s future but will not have rights to its consumer hardware products.
Sources close to the two companies say OpenAI will share 20% of its revenue with Microsoft in the years to come. The software firm will have no right of first refusal to serve as OpenAI’s compute provider. Altman will not get a stake in the restructured company.
Microsoft-OpenAI Restructure Deal at a Glance
- OpenAI Group PBC will be controlled OpenAI Foundation
- OpenAI will share 20% of annual revenue with Microsoft
- Microsoft lost right of first refusal as compute provider
- Microsoft will not have rights to its consumer hardware products
New Opportunities to Raise Capital
The latest agreement also unlocks OpenAI’s ability to raise capital and secure computing resources from Microsoft. These resources have existed since the two firms forged a partnership in 2019. But tensions emerged between the two firms after ChatGPT gained popularity three years ago.
OpenAI Group PBC will run like any other conventional firm. This allows Altman to sign new deals, raise funds, and shape the wider AI industry. OpenAI recently signed a chip deal with AMD, giving it the option of getting a 10% stake in the chipmaker.
