On October 29, 2025, Microsoft reported strong fiscal first quarter results, highlighted by robust Azure and cloud growth, a restructured partnership with OpenAI valued at US$135 billion, and plans to double its data center footprint over the next two years to meet rising AI demand.

Microsoft and OpenAI unveil a deal extending IP rights, adding independent AGI verification, and giving both sides more freedom while maintaining Azure ties.

Microsoft made its first investment in Sam Altman's OpenAI in 2019. It now holds a 27% in OpenAI's for-profit business.

Microsoft and OpenAI announced a restructuring deal on Tuesday that frees the ChatGPT maker to move away from its nonprofit roots and likely go public so it can finance CEO Sam Altman's ambitious plans to develop data centers and cutting-edge technology.

The deal removes a major constraint on raising capital for OpenAI, which was founded as a nonprofit AI safety group.

Microsoft lifted a funding restriction on OpenAI that became a point of conflict after ChatGPT took off required more computing power.

Microsoft's (MSFT) 27% stake in OpenAI (OPAI.PVT) is currently valued at $135 billion, according to the two companies' latest for-profit agreement. This all comes ahead of Microsoft's fiscal first quarter earnings results due out after the closing bell on Wednesday.

Uncertainty around Microsoft's future relationship with OpenAI had been a cloud over the stock until the companies announced on Tuesday new details around their arrangement. As per a new agreement, Microsoft's stake in OpenAI will have a valuation of about $135 billion.