OpenAI has officially entered a new phase in its evolution. In a landmark move, the company has completed a major organisational restructuring while simultaneously signing a new definitive partnership agreement with Microsoft — a step that reshapes the future of one of the most influential relationships in artificial intelligence.
Together, these changes redefine governance, ownership, funding, and the long-term vision for how advanced AI should be developed and deployed responsibly.
A Reorganisation Focused on Mission Control
At the heart of OpenAI’s restructuring is a renewed effort to strengthen nonprofit oversight of its commercial operations.
Under the new structure:
- The nonprofit entity now operates as the OpenAI Foundation
- The commercial business becomes OpenAI Group Public Benefit Corporation (PBC)
- The Foundation retains controlling authority over the for-profit arm
This structure ensures that OpenAI’s commercial success directly supports its original mission: developing artificial intelligence that benefits humanity as a whole.
The OpenAI Foundation now holds equity in the commercial entity valued at approximately $130 billion, instantly positioning it among the world’s most powerful philanthropic organisations.
Funding the Global AI Mission
As the for-profit OpenAI Group PBC grows, the Foundation’s equity stake increases in value. That capital will be used to support an initial $25 billion commitment toward:
- Global health initiatives
- AI safety and resilience programs
- Long-term societal preparedness for advanced AI systems
OpenAI describes this governance model as maintaining “the strongest representation of mission-focused governance in the industry today.”
Regulatory Oversight and Approval
The restructure follows nearly a year of consultation with the Attorneys General of California and Delaware.
OpenAI confirmed that several changes were made as a result of these discussions, stating that the final structure better serves both the organisation and the public interest.
Microsoft Partnership Enters a New Phase
Alongside the reorganisation, OpenAI and Microsoft have signed a new long-term partnership agreement that significantly updates their relationship.
Microsoft’s total investment in OpenAI is now valued at approximately $135 billion, translating to a 27% ownership stake in OpenAI Group PBC — slightly reduced from its previous 32.5% due to new funding rounds.
Azure Remains Central — With Limits
Microsoft will continue as OpenAI’s exclusive Azure cloud provider for frontier AI models — but only until artificial general intelligence (AGI) is officially achieved.
A major governance change accompanies this condition:
Any declaration of AGI must now be verified by an independent expert panel.
This external validation requirement introduces a new layer of accountability and prevents unilateral declarations of AGI status.
Extended IP Rights Through 2032
The revised agreement extends Microsoft’s intellectual property rights through 2032 and now includes:
- Models developed after AGI is declared
- Built-in safety and deployment guardrails
This ensures long-term continuity while maintaining safeguards around highly advanced systems.
Microsoft Gains AGI Independence
Under the new terms, Microsoft can now:
- Pursue AGI research independently
- Collaborate with other partners
- Build AGI systems using OpenAI IP under defined compute thresholds
If Microsoft develops AGI before it is officially declared, those systems must exceed compute limits far greater than today’s models — ensuring alignment with safety expectations.
New Flexibility for OpenAI
The partnership changes also provide OpenAI with greater strategic freedom.
OpenAI has committed to purchasing an additional $250 billion in Azure services, but Microsoft no longer holds a right of first refusal for future compute.
This gives OpenAI:
- Greater leverage in infrastructure negotiations
- The ability to diversify cloud strategy over time
Open Models and Government Deployments
For the first time, OpenAI can now:
- Release open-weight models that meet defined safety criteria
- Serve U.S. government national security customers on any approved cloud platform
This represents a notable shift toward flexibility and public-sector collaboration.
Product Development Boundaries
The agreement also clarifies development rights:
- Non-API products may be jointly developed with third parties
- API-based products developed with others must remain on Azure
- Microsoft’s IP rights explicitly exclude any future OpenAI consumer hardware
Revenue Sharing Continues — With Adjustments
The existing revenue-sharing framework remains active until AGI is verified by the expert panel. However, payments will now be distributed over a longer duration to support sustained investment and stability.
A New Model for the AI Industry
Together, these changes represent one of the most ambitious governance experiments in modern technology.
OpenAI’s new structure:
- Aligns profit with public benefit
- Strengthens nonprofit oversight
- Introduces independent AGI verification
- Balances innovation with safety and accountability
As OpenAI stated, this updated model provides the ability to push the AI frontier forward while ensuring that technological progress “serves everyone.”
Final Thoughts
The restructuring of OpenAI and the evolution of its Microsoft partnership mark a defining moment for the global AI ecosystem.
Rather than focusing solely on scale or competition, both organisations are attempting something unprecedented — combining massive commercial investment with nonprofit control, independent oversight, and long-term social responsibility.