Microsoft–OpenAI deal lifts fundraising cap, sets up IPO path
Microsoft and OpenAI agreed on a restructuring that recasts the company as OpenAI Group PBC under the control of the OpenAI Foundation. The move lifts constraints that had limited outside fundraising and tied OpenAI exclusively to Microsoft for compute.
CEO Sam Altman said the company now expects to pursue an IPO to finance an industrial‑scale build‑out of data centers and power.
The timing matters because OpenAI says its roadmap requires roughly 30 gigawatts of capacity over the next few years, far beyond typical hyperscale builds. A public benefit corporation - a for‑profit with a mission explicitly embedded in its charter - lets OpenAI raise equity while keeping nonprofit stewardship over core objectives like safety and access.
Microsoft remains central to the story. It holds about a 27% stake, keeps a multi‑year product and cloud agreement, and stands to supply enormous Azure capacity - publicly referenced as about $250 billion of services over time - while sharing revenue from certain OpenAI products for years. The collaboration extends into the 2030s, and Microsoft shares rose on the news, briefly lifting its market value back above $4 trillion as investors welcomed both continued economics and clearer governance.
Several terms shift in OpenAI’s favor. Microsoft no longer has the right of first refusal to be the exclusive compute provider, and it gives up rights to OpenAI‑branded consumer hardware. Provisions tied to any declaration of artificial general intelligence tighten as well: an independent panel must validate any artificial general intelligence (AGI) claim before contract terms can flip, such as ending revenue‑share sooner.
Control sits with the nonprofit. The OpenAI Foundation oversees the for‑profit PBC, and board leaders, including chair Bret Taylor and Sam Altman, can appoint or remove PBC directors. Altman does not receive equity under the new structure and continues on a nominal salary, reversing ideas floated last year about giving him a stake.
In plain English, the deal turns OpenAI from a capital‑constrained research‑plus‑product shop into a mission‑controlled, capital‑raising platform able to pursue gigantic infrastructure and model bets. Microsoft remains a cornerstone partner with attractive economics, while OpenAI gains latitude to tap new investors and additional compute suppliers. For users, the near‑term effect is simple: more models, more features, and a larger ecosystem of apps building on top — powered by a lot more compute.
As GNcrypto wrote earlier, Microsoft and OpenAI signaled this shift back on Sept. 12 with a non‑binding MOU to revise their partnership and unlock a move from the nonprofit + capped‑profit setup to a fully commercial structure. That early outline kept nonprofit control but opened the door to fresh capital and IPO prep, loosened exclusivity around compute and product access, and aimed to resolve AGI‑trigger conflicts. Markets welcomed the trajectory at the time, and today’s finalized structure is the follow‑through: mission control retained, fundraising uncapped, and a clearer lane to scale models and infrastructure.
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