Microsoft-OpenAI partnership: Microsoft and OpenAI have reached a landmark agreement allowing the ChatGPT maker to restructure as a public benefit corporation (PBC), valuing OpenAI at $500 billion and granting it more operational freedom. The deal removes a major constraint on raising capital that has existed since 2019, when OpenAI signed an agreement with Microsoft giving the tech giant rights over much of OpenAI’s work in exchange for cloud computing services.

Under the new structure, Microsoft will hold a stake of about $135 billion, or 27%, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit entity. The Redmond-based firm has invested $13.8 billion in OpenAI, and the recent deal implies Microsoft has realized nearly ten times its investment. Follo

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