Microsoft OpenAI New Deal Values ChatGPT Maker At $500B

Microsoft and OpenAI have reached a landmark agreement allowing OpenAI to restructure as a public benefit corporation, valuing it at $500 billion. This deal lifts previous capital-raising restrictions imposed by a 2019 pact, enabling OpenAI more freedom in business operations amid rapidly growing demand for ChatGPT, which now boasts over 700 million weekly users. Microsoft retains a 27% stake valued at approximately $135 billion, reflecting nearly a tenfold return on its $13.8 billion investment, and the two companies will remain closely linked through at least 2032 via a substantial cloud computing contract. Microsoft also maintains rights to OpenAI's products and AI models until 2032, including any advancements towards artificial general intelligence (AGI). The OpenAI Foundation, a nonprofit, controls the for-profit OpenAI Group PBC, ensuring governance aligned with public benefit objectives. This restructuring simplifies OpenAI's corporate structure and positions it for greater access to resources ahead of future AI developments.