OpenAI’s $500B Overhaul Rocks Tech World: Microsoft Snags $135B Stake and AI ‘Arms Race’ Ignites
OpenAI has completed a major recapitalization, with its nonprofit foundation retaining 26% of the for-profit arm, valued at about $130 billion. Microsoft’s stake drops to 27% but gains exclusive model rights and Azure access through 2032, while OpenAI commits to spend $250 billion on Azure. The new structure allows OpenAI to partner beyond Microsoft. Microsoft stock rose 4% on the news.