09:36 AM EDT, 10/28/2025 (MT Newswires) -- Microsoft ( MSFT ) said Tuesday that it has signed a definitive agreement with OpenAI that "builds on our foundation, strengthens our partnership, and sets the stage for long-term success for both organizations."

Microsoft ( MSFT ) said it supports the board of OpenAI moving ahead with the formation of a public benefit corporation, or PBC, and recapitalization. After recapitalization, Microsoft ( MSFT ) will hold an investment in OpenAI Group PBC valued at about $135 billion, representing roughly 27% on an as-converted diluted basis.

Under the new agreement, OpenAI has also contracted to buy an incremental $250 billion of Azure services, while Microsoft ( MSFT ) will no longer have a right of first refusal to be OpenAI's compute provider, Microsoft ( MSFT ) said.

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