Microsoft Secures 20% OpenAI Revenue Through 2032 and $135B PBC Stake
Microsoft will receive 20% of OpenAI revenue through 2032 and hold a 27% stake in a public benefit corporation valued at $135 billion. The agreement preserves Microsoft’s exclusive IP and Azure API rights and makes it a lead investor in OpenAI’s $40 billion funding round closing Q1 2026.
1. Revised Revenue Share Agreement
Under the updated terms, Microsoft will collect 20% of OpenAI’s total revenue through 2032, extending its previous entitlement by two years and allowing OpenAI to collaborate with other compute providers without granting Microsoft first refusal rights.
2. Public Benefit Corporation Stake
Microsoft has secured a 27% equity interest in OpenAI Group’s newly formed public benefit corporation, valuing its stake at approximately $135 billion and aligning its investment with OpenAI’s governance and mission.
3. Preserved IP and Azure API Rights
The deal maintains Microsoft’s exclusive intellectual property rights and Azure API exclusivity until an independent panel verifies the achievement of artificial general intelligence, reinforcing Microsoft’s preferred cloud platform status.
4. Funding Round Participation
Microsoft will join Nvidia, Amazon and others in a planned $40 billion funding round aimed at expanding OpenAI’s data center capacity, with the raise expected to close in the first quarter of 2026.