(Reuters) -Microsoft ( MSFT ) and OpenAI on Tuesday said they had reached a deal to allow the ChatGPT maker to restructure itself into a public benefit corporation, valuing OpenAI at $500 billion and clearing the way for it to become a publicly traded company.

The Windows maker would hold a stake of about $135 billion - or 27% - in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit. 

Here are reactions from analysts and investors: 

GIL LURIA, HEAD OF TECHNOLOGY RESEARCH AT DA DAVIDSON, PORTLAND, OREGON

"The restructuring of OpenAI and its deal with Microsoft ( MSFT ) is an important milestone for the company's move forward towards AGI. It resolves the longstanding issue of OpenAI being organized as a not-for-profit (organization) and settles the ownership rights of the technology vis-a-vis Microsoft ( MSFT ). The new structure should provide more clarity on OpenAI's investments path, thus facilitating further fundraising."

ART HOGAN, CHIEF MARKET STRATEGIST, B RILEY WEALTH, NEW YORK

"It certainly seems to be the in-vogue thing to do. Over the course of the last several weeks, everyone's come out and said what they are going to do with OpenAI. And I think that tends to become very self-fulfilling. So when the news gets dropped, you know, whether it's Adobe or today with Microsoft ( MSFT ), you have got the potential to become an even more important player in the AI revolution."

(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)