An agreement has been reached between Microsoft and OpenAI, bringing clarity for investors and allowing OpenAI to transition into a for-profit entity without any uncertainty. As part of the deal, Microsoft acquires a 27% ownership share in OpenAI valued at around $135 billion and secures access to the startup’s AI technology until 2032, including AGI-capable models. OpenAI has successfully restructured its operations, streamlining its corporate setup while ensuring that the nonprofit entity retains control over the for-profit arm. The OpenAI Foundation is granted an equity stake estimated at $130 billion and intends to concentrate on supporting projects that advance healthcare innovations initially. Microsoft’s significant financial support of $13.75 billion played a crucial role in backing OpenAI and stood out as the primary holdout during negotiations. Following the achievement of AGI, validated by an independent panel of experts, Microsoft will cease to receive a share of OpenAI’s profits. Moreover, Microsoft relinquishes its first refusal rights concerning new cloud infrastructure ventures from OpenAI, although OpenAI commits an additional $250 billion to Azure services.