\n<\/p>\n
The deal removes a major constraint on raising capital for OpenAI, the maker of ChatGPT, and values the firm at $500bn.<\/em><\/p>\n<\/div>\n\n\nPublished On 28 Oct 2025<\/span>28 Oct 2025<\/span><\/p>\n<\/div>\n\n\n<\/p>\nClick here to share on social media<\/p>\nshare2<\/title><path fill=\"#000\" fill-rule=\"evenodd\" d=\"M11.688 9.048c-.659 0-1.252.282-1.673.733l-4.92-2.45c.016-.115.028-.232.028-.352 0-.117-.011-.23-.027-.343l4.913-2.423a2.285 2.285 0 0 0 1.68.739C12.964 4.952 14 3.899 14 2.6 14 1.302 12.965.25 11.688.25S9.377 1.302 9.377 2.601c0 .117.01.23.027.343L4.49 5.367a2.285 2.285 0 0 0-1.68-.739C1.536 4.628.5 5.681.5 6.979c0 1.299 1.035 2.35 2.312 2.35.659 0 1.252-.281 1.673-.731l4.92 2.45a2.357 2.357 0 0 0-.029.351c0 1.299 1.035 2.351 2.312 2.351S14 12.698 14 11.399s-1.035-2.35-2.312-2.35Z\" clip-rule=\"evenodd\"\/><\/svg><\/button><\/p>\n<p class=\"rich-share__social-text\">Share<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div aria-live=\"polite\" aria-atomic=\"true\">\n<p class=\"tr-story-p1\">Microsoft and OpenAI have reached a deal to allow the ChatGPT maker to restructure itself into a public-benefit corporation, valuing OpenAI at $500bn and giving it more freedom in its business operations.<\/p>\n<p>The deal, unveiled on Tuesday, removes a major constraint on raising capital for OpenAI that has existed since 2019.<\/p>\n<section class=\"more-on\">\n<h2 class=\"more-on__heading\">Recommended Stories<!-- --> <\/h2>\n<p><span class=\"screen-reader-text\">list of 4 items<\/span><span class=\"screen-reader-text\">end of list<\/span><\/section>\n<p>At the time, it had signed an agreement with Microsoft that gave the tech giant rights over much of OpenAI\u2019s work in exchange for costly cloud computing services needed to carry it out. As its ChatGPT service exploded in popularity, those limitations had become a notable source of tension between the two companies.<\/p>\n<p>Microsoft will still hold a stake of about $135bn, or 27 percent, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit, the companies said.<\/p>\n<p>Microsoft, based in Redmond, Washington in the United States, has invested $13.8bn in OpenAI, with Tuesday\u2019s deal implying that the firm had generated a return of nearly 10 times its investment.<\/p>\n<p>Shares of Microsoft rose 2.5 percent, sending its market value above $4 trillion again.<\/p>\n<p>The deal keeps the two firms intertwined until at least 2032, with a massive cloud computing contract and with Microsoft retaining some rights to OpenAI products and artificial intelligence (AI) models until then \u2013 even if OpenAI reaches artificial general intelligence (AGI), the point at which AI systems can match a well-educated human adult.<\/p>\n<h2 id=\"simplified-corporate-structure\">Simplified corporate structure<\/h2>\n<p>With more than 700 million weekly users as of September, ChatGPT has exploded in popularity to become the face of AI for many consumers after OpenAI\u2019s founding as a nonprofit AI safety group.<\/p>\n<p>As the company grew, the Microsoft deal constrained OpenAI\u2019s ability to raise funds from outside investors and secure computing contracts as the crush of ChatGPT users and its research into new models caused its computing needs to skyrocket.<\/p>\n<p>\u201cOpenAI has completed its recapitalization, simplifying its corporate structure,\u201d Bret Taylor, the OpenAI Foundation\u2019s board chair, said in a blog post. \u201cThe nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.\u201d<\/p>\n<p>Microsoft\u2019s previous 2019 agreement had many provisions that rested on when OpenAI reached that point, and the new deal requires an independent panel to verify OpenAI\u2019s claims it has reached AGI.<\/p>\n<p>\u201cOpenAI still faces ongoing scrutiny around transparency, data usage, and safety oversight. But overall, this structure should provide a clearer path forward for innovation and accountability,\u201d said Adam Sarhan, CEO of 50 Park Investments.<\/p>\n<p>Gil Luria, head of technology research at DA Davidson, said the deal \u201cresolves the longstanding issue of OpenAI being organized as a not-for-profit [organisation] and settles the ownership rights of the technology vis-a-vis Microsoft. The new structure should provide more clarity on OpenAI\u2019s investment path, thus facilitating further fundraising.\u201d<\/p>\n<p>Microsoft also said that it has secured a deal with OpenAI where the ChatGPT maker will purchase $250bn of Microsoft Azure cloud computing services. In exchange, Microsoft will no longer have a right of first refusal to provide computing services to OpenAI.<\/p>\n<p>Microsoft also said that it will not have any rights to hardware produced by OpenAI. In March, OpenAI bought longtime Apple design chief Jony Ive\u2019s startup io Products in a $6.5bn deal.<\/p>\n<\/div>\n<p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The deal removes a major constraint on raising capital for OpenAI, the maker of ChatGPT, and values the firm at $500bn. Published On 28 Oct 202528 Oct 2025 Click here to share on social media share2 Share Microsoft and OpenAI have reached a deal to allow the ChatGPT maker to restructure itself into a public-benefit […]<\/p>\n","protected":false},"author":1,"featured_media":389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-canada-news"],"_links":{"self":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=388"}],"version-history":[{"count":0,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/388\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/media\/389"}],"wp:attachment":[{"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Published On 28 Oct 2025<\/span>28 Oct 2025<\/span><\/p>\n<\/div>\n\n\n<\/p>\nClick here to share on social media<\/p>\nshare2<\/title><path fill=\"#000\" fill-rule=\"evenodd\" d=\"M11.688 9.048c-.659 0-1.252.282-1.673.733l-4.92-2.45c.016-.115.028-.232.028-.352 0-.117-.011-.23-.027-.343l4.913-2.423a2.285 2.285 0 0 0 1.68.739C12.964 4.952 14 3.899 14 2.6 14 1.302 12.965.25 11.688.25S9.377 1.302 9.377 2.601c0 .117.01.23.027.343L4.49 5.367a2.285 2.285 0 0 0-1.68-.739C1.536 4.628.5 5.681.5 6.979c0 1.299 1.035 2.35 2.312 2.35.659 0 1.252-.281 1.673-.731l4.92 2.45a2.357 2.357 0 0 0-.029.351c0 1.299 1.035 2.351 2.312 2.351S14 12.698 14 11.399s-1.035-2.35-2.312-2.35Z\" clip-rule=\"evenodd\"\/><\/svg><\/button><\/p>\n<p class=\"rich-share__social-text\">Share<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div aria-live=\"polite\" aria-atomic=\"true\">\n<p class=\"tr-story-p1\">Microsoft and OpenAI have reached a deal to allow the ChatGPT maker to restructure itself into a public-benefit corporation, valuing OpenAI at $500bn and giving it more freedom in its business operations.<\/p>\n<p>The deal, unveiled on Tuesday, removes a major constraint on raising capital for OpenAI that has existed since 2019.<\/p>\n<section class=\"more-on\">\n<h2 class=\"more-on__heading\">Recommended Stories<!-- --> <\/h2>\n<p><span class=\"screen-reader-text\">list of 4 items<\/span><span class=\"screen-reader-text\">end of list<\/span><\/section>\n<p>At the time, it had signed an agreement with Microsoft that gave the tech giant rights over much of OpenAI\u2019s work in exchange for costly cloud computing services needed to carry it out. As its ChatGPT service exploded in popularity, those limitations had become a notable source of tension between the two companies.<\/p>\n<p>Microsoft will still hold a stake of about $135bn, or 27 percent, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit, the companies said.<\/p>\n<p>Microsoft, based in Redmond, Washington in the United States, has invested $13.8bn in OpenAI, with Tuesday\u2019s deal implying that the firm had generated a return of nearly 10 times its investment.<\/p>\n<p>Shares of Microsoft rose 2.5 percent, sending its market value above $4 trillion again.<\/p>\n<p>The deal keeps the two firms intertwined until at least 2032, with a massive cloud computing contract and with Microsoft retaining some rights to OpenAI products and artificial intelligence (AI) models until then \u2013 even if OpenAI reaches artificial general intelligence (AGI), the point at which AI systems can match a well-educated human adult.<\/p>\n<h2 id=\"simplified-corporate-structure\">Simplified corporate structure<\/h2>\n<p>With more than 700 million weekly users as of September, ChatGPT has exploded in popularity to become the face of AI for many consumers after OpenAI\u2019s founding as a nonprofit AI safety group.<\/p>\n<p>As the company grew, the Microsoft deal constrained OpenAI\u2019s ability to raise funds from outside investors and secure computing contracts as the crush of ChatGPT users and its research into new models caused its computing needs to skyrocket.<\/p>\n<p>\u201cOpenAI has completed its recapitalization, simplifying its corporate structure,\u201d Bret Taylor, the OpenAI Foundation\u2019s board chair, said in a blog post. \u201cThe nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.\u201d<\/p>\n<p>Microsoft\u2019s previous 2019 agreement had many provisions that rested on when OpenAI reached that point, and the new deal requires an independent panel to verify OpenAI\u2019s claims it has reached AGI.<\/p>\n<p>\u201cOpenAI still faces ongoing scrutiny around transparency, data usage, and safety oversight. But overall, this structure should provide a clearer path forward for innovation and accountability,\u201d said Adam Sarhan, CEO of 50 Park Investments.<\/p>\n<p>Gil Luria, head of technology research at DA Davidson, said the deal \u201cresolves the longstanding issue of OpenAI being organized as a not-for-profit [organisation] and settles the ownership rights of the technology vis-a-vis Microsoft. The new structure should provide more clarity on OpenAI\u2019s investment path, thus facilitating further fundraising.\u201d<\/p>\n<p>Microsoft also said that it has secured a deal with OpenAI where the ChatGPT maker will purchase $250bn of Microsoft Azure cloud computing services. In exchange, Microsoft will no longer have a right of first refusal to provide computing services to OpenAI.<\/p>\n<p>Microsoft also said that it will not have any rights to hardware produced by OpenAI. In March, OpenAI bought longtime Apple design chief Jony Ive\u2019s startup io Products in a $6.5bn deal.<\/p>\n<\/div>\n<p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The deal removes a major constraint on raising capital for OpenAI, the maker of ChatGPT, and values the firm at $500bn. Published On 28 Oct 202528 Oct 2025 Click here to share on social media share2 Share Microsoft and OpenAI have reached a deal to allow the ChatGPT maker to restructure itself into a public-benefit […]<\/p>\n","protected":false},"author":1,"featured_media":389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-canada-news"],"_links":{"self":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=388"}],"version-history":[{"count":0,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/388\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/media\/389"}],"wp:attachment":[{"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Click here to share on social media<\/p>\n
share2<\/title><path fill=\"#000\" fill-rule=\"evenodd\" d=\"M11.688 9.048c-.659 0-1.252.282-1.673.733l-4.92-2.45c.016-.115.028-.232.028-.352 0-.117-.011-.23-.027-.343l4.913-2.423a2.285 2.285 0 0 0 1.68.739C12.964 4.952 14 3.899 14 2.6 14 1.302 12.965.25 11.688.25S9.377 1.302 9.377 2.601c0 .117.01.23.027.343L4.49 5.367a2.285 2.285 0 0 0-1.68-.739C1.536 4.628.5 5.681.5 6.979c0 1.299 1.035 2.35 2.312 2.35.659 0 1.252-.281 1.673-.731l4.92 2.45a2.357 2.357 0 0 0-.029.351c0 1.299 1.035 2.351 2.312 2.351S14 12.698 14 11.399s-1.035-2.35-2.312-2.35Z\" clip-rule=\"evenodd\"\/><\/svg><\/button><\/p>\n<p class=\"rich-share__social-text\">Share<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div aria-live=\"polite\" aria-atomic=\"true\">\n<p class=\"tr-story-p1\">Microsoft and OpenAI have reached a deal to allow the ChatGPT maker to restructure itself into a public-benefit corporation, valuing OpenAI at $500bn and giving it more freedom in its business operations.<\/p>\n<p>The deal, unveiled on Tuesday, removes a major constraint on raising capital for OpenAI that has existed since 2019.<\/p>\n<section class=\"more-on\">\n<h2 class=\"more-on__heading\">Recommended Stories<!-- --> <\/h2>\n<p><span class=\"screen-reader-text\">list of 4 items<\/span><span class=\"screen-reader-text\">end of list<\/span><\/section>\n<p>At the time, it had signed an agreement with Microsoft that gave the tech giant rights over much of OpenAI\u2019s work in exchange for costly cloud computing services needed to carry it out. As its ChatGPT service exploded in popularity, those limitations had become a notable source of tension between the two companies.<\/p>\n<p>Microsoft will still hold a stake of about $135bn, or 27 percent, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit, the companies said.<\/p>\n<p>Microsoft, based in Redmond, Washington in the United States, has invested $13.8bn in OpenAI, with Tuesday\u2019s deal implying that the firm had generated a return of nearly 10 times its investment.<\/p>\n<p>Shares of Microsoft rose 2.5 percent, sending its market value above $4 trillion again.<\/p>\n<p>The deal keeps the two firms intertwined until at least 2032, with a massive cloud computing contract and with Microsoft retaining some rights to OpenAI products and artificial intelligence (AI) models until then \u2013 even if OpenAI reaches artificial general intelligence (AGI), the point at which AI systems can match a well-educated human adult.<\/p>\n<h2 id=\"simplified-corporate-structure\">Simplified corporate structure<\/h2>\n<p>With more than 700 million weekly users as of September, ChatGPT has exploded in popularity to become the face of AI for many consumers after OpenAI\u2019s founding as a nonprofit AI safety group.<\/p>\n<p>As the company grew, the Microsoft deal constrained OpenAI\u2019s ability to raise funds from outside investors and secure computing contracts as the crush of ChatGPT users and its research into new models caused its computing needs to skyrocket.<\/p>\n<p>\u201cOpenAI has completed its recapitalization, simplifying its corporate structure,\u201d Bret Taylor, the OpenAI Foundation\u2019s board chair, said in a blog post. \u201cThe nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.\u201d<\/p>\n<p>Microsoft\u2019s previous 2019 agreement had many provisions that rested on when OpenAI reached that point, and the new deal requires an independent panel to verify OpenAI\u2019s claims it has reached AGI.<\/p>\n<p>\u201cOpenAI still faces ongoing scrutiny around transparency, data usage, and safety oversight. But overall, this structure should provide a clearer path forward for innovation and accountability,\u201d said Adam Sarhan, CEO of 50 Park Investments.<\/p>\n<p>Gil Luria, head of technology research at DA Davidson, said the deal \u201cresolves the longstanding issue of OpenAI being organized as a not-for-profit [organisation] and settles the ownership rights of the technology vis-a-vis Microsoft. The new structure should provide more clarity on OpenAI\u2019s investment path, thus facilitating further fundraising.\u201d<\/p>\n<p>Microsoft also said that it has secured a deal with OpenAI where the ChatGPT maker will purchase $250bn of Microsoft Azure cloud computing services. In exchange, Microsoft will no longer have a right of first refusal to provide computing services to OpenAI.<\/p>\n<p>Microsoft also said that it will not have any rights to hardware produced by OpenAI. In March, OpenAI bought longtime Apple design chief Jony Ive\u2019s startup io Products in a $6.5bn deal.<\/p>\n<\/div>\n<p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The deal removes a major constraint on raising capital for OpenAI, the maker of ChatGPT, and values the firm at $500bn. Published On 28 Oct 202528 Oct 2025 Click here to share on social media share2 Share Microsoft and OpenAI have reached a deal to allow the ChatGPT maker to restructure itself into a public-benefit […]<\/p>\n","protected":false},"author":1,"featured_media":389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-us-canada-news"],"_links":{"self":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=388"}],"version-history":[{"count":0,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/posts\/388\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=\/wp\/v2\/media\/389"}],"wp:attachment":[{"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/inernews.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}