Microsoft and OpenAI have finalized their partnership details, giving both companies more flexibility while increasing competition in the AI space. The reorganization allows Microsoft to hold a $135 billion stake in OpenAI, but the two companies’ paths are likely to diverge in coming years.
Under the new deal, OpenAI has more freedom to seek hyper-growth and develop consumer hardware without worrying about Microsoft’s access to its technology. In return, Microsoft gains $250 billion in new business commitments to its Azure cloud services and longer-term certainty of access to OpenAI’s technology.
The partnership also gives Microsoft a buffer to pursue artificial general intelligence (AGI) on its own, subject to certain limits. The revised deal provides Microsoft with the rights to use OpenAI’s intellectual property through 2032, protecting the foundation of its Copilot strategy and Azure OpenAI monetization.
While some analysts see the deal as positive for Microsoft, others argue that it removes clarity and may allow the public nonprofit to serve at the beck and call of the for-profit entity.
Source: https://www.axios.com/2025/10/29/microsoft-openai-azure-deal-agi