Microsoft and OpenAI unveil a deal extending IP rights, adding independent AGI verification, and giving both sides more freedom while maintaining Azure ties.

Microsoft made its first investment in Sam Altman's OpenAI in 2019. It now holds a 27% in OpenAI's for-profit business.

OpenAI has become a public benefit corporation, giving Microsoft a 27% stake and long-term access to research methods

OpenAI established a for-profit arm valued at $500 billion Tuesday, doing so through a long-anticipated corporate restructure that provides Microsoft with a large stake in the new company as it looks to expand on its rapidly expanding artificial intelligence offerings.

Uncertainty around Microsoft's future relationship with OpenAI had been a cloud over the stock until the companies announced on Tuesday new details around their arrangement. As per a new agreement, Microsoft's stake in OpenAI will have a valuation of about $135 billion.

Microsoft and OpenAI announced the long-awaited details of their new partnership agreement Tuesday morning — with concessions on both sides that keep the companies aligned but not in lockstep as they move into their next phases of AI development.

Microsoft lifted a funding restriction on OpenAI that became a point of conflict after ChatGPT took off required more computing power.

Mustafa Suleyman, the CEO of Microsoft AI, even described the new product in those terms in the announcement. “Copilot Mode in Edge is evolving into an AI browser that is your dynamic, intelligent companion,