$500 Billion & Counting: Next Chapter In Microsoft-OpenAI Partnership Revealed

Microsoft and OpenAI have finalized a long-term agreement, solidifying their AI partnership. Microsoft's stake in OpenAI is now 27%, valued at $135 billion, following OpenAI's recapitalization. The agreement grants Microsoft exclusive IP rights and Azure API exclusivity until Artificial General Intelligence (AGI) is declared. OpenAI will purchase $250 billion in Azure services and Microsoft has access to OpenAI's models until 2032. Crucially, Microsoft loses its exclusive right of first refusal for OpenAI's compute needs. An independent expert panel will verify OpenAI's AGI declaration. Microsoft's IP rights for models and products extend through 2032, inclusive of post-AGI models, but exclude consumer hardware. OpenAI can now create API products with third parties, exclusively through Azure. Microsoft can independently pursue AGI and use OpenAI's IP, subject to compute thresholds and existing revenue share.