Microsoft (MSFT) and OpenAI announced on Tuesday that they have reached a new agreement enabling the ChatGPT developer to move forward with the formation of a public benefit corporation (PBC) and recapitalization.
Following the recapitalization, Microsoft will hold an investment in OpenAI Group PBC valued at about $135 billion, representing roughly 27 percent on an as-converted diluted basis, inclusive of all owners—employees, investors, and the OpenAI Foundation.
Excluding the impact of OpenAI's recent funding rounds, Microsoft held a 32.5 percent stake on an as-converted basis in the OpenAI for-profit.
The agreement preserves key elements that have fueled this successful partnership—meaning OpenAI remains Microsoft's frontier model partner and Microsoft continues to have exclusive IP rights and Azure API exclusivity until Artificial General Intelligence (AGI).
Separately, OpenAI said it has completed its recapitalization, simplifying its corporate structure. The nonprofit remains in control of the for-profit and now has a direct path to major resources before AGI arrives.
The nonprofit, now called the OpenAI Foundation, holds equity in the for-profit, currently valued at approximately $130 billion, making it one of the best-resourced philanthropic organizations ever. The recapitalization also grants the Foundation additional ownership as OpenAI's for-profit reaches a valuation milestone.
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Business News
June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.