Microsoft and OpenAI Sign New Agreement With a Defining AGI Clause; Establish For-Profit Entity “OpenAI Group PBC”

OpenAI has taken a major step in its ongoing corporate restructuring by officially creating a new for-profit entity known as OpenAI Group Public Benefit Corporation (PBC). The OpenAI Foundation—a nonprofit organization—will retain control over the new company and gain direct access to its capital. This change marks a significant milestone in OpenAI’s evolution and strengthens its long-standing partnership with Microsoft through a newly signed agreement that includes a defining clause on artificial general intelligence (AGI).

OpenAI Group PBC Officially Recognized and Operational

OpenAI announced the completion of its recapitalization process, which simplifies its ownership structure and broadens access to investment opportunities unrestricted by nonprofit limitations. The introduction of the PBC allows OpenAI to function as a public benefit corporation while remaining aligned with its founding mission—to ensure AGI benefits all of humanity.

The OpenAI Foundation will hold ownership of the new for-profit company, currently valued at approximately $130 billion (about ₹11.5 lakh crore). The Foundation plans to allocate $25 billion (around ₹2.2 lakh crore) toward two primary focus areas: improving global healthcare through AI-driven diagnostics, treatments, and cures, and enhancing cybersecurity to safeguard AI infrastructure worldwide.

In OpenAI’s words, “Through the company and the Foundation, our mission—to make sure that AGI benefits all of humanity—will be further advanced. The nonprofit will use its equity stake to fund charitable projects. As OpenAI grows in commercial success, the Foundation’s capacity for social good will expand proportionally.”

OpenAI Foundation and Company Aligned Toward Shared Goals

Both the newly established OpenAI Group PBC and the OpenAI Foundation will continue working in synergy to uphold the company’s original mission. The Foundation’s ownership stake is designed to grow in value alongside OpenAI’s business performance, providing sustainable funding for philanthropic efforts. This structure ensures that as OpenAI advances technologically and commercially, its contributions to society expand in tandem.

The New Microsoft–OpenAI Agreement: Future-Proof Partnership

As part of its restructuring, OpenAI has signed a new long-term agreement with Microsoft that emphasizes flexibility, independence, and mutual benefit. This strategic partnership paves the way for continued collaboration in AI innovation—while safeguarding OpenAI’s autonomy, particularly in the post-AGI era.

Under the new deal, Microsoft’s stake in the for-profit company has been adjusted. The tech giant now holds approximately 27 percent of OpenAI Group PBC on an as-converted basis, down from its previous 32.5 percent stake. This adjustment reflects a deliberate move by Microsoft to ensure a balanced partnership while allowing OpenAI greater strategic independence.

The revised terms mark the next stage of their alliance, highlighting a shared commitment to ethical AI growth and long-term sustainability. While Microsoft maintains strong collaborative rights, OpenAI now has more freedom to manage its internal operations, research programs, and technology development.

Microsoft’s Extended IP Rights and the AGI Clause

One of the most significant elements of the new agreement is Microsoft’s extended intellectual property (IP) rights through 2032. These rights include access to post-AGI models, effectively ensuring that Microsoft remains a key technological partner even as OpenAI moves toward the next stage of Artificial Intelligence evolution.

However, OpenAI retains greater authority over its internal research, development procedures, and testing infrastructure. The company will continue to direct its scientific agenda independently, ensuring that its pursuit of AGI remains aligned with its ethical mission. Notably, OpenAI’s consumer hardware products are no longer included under Microsoft’s IP rights—a move signaling OpenAI’s intention to maintain full control over its hardware innovation pipeline.

According to industry experts, this restructuring represents one of the most forward-looking partnerships in the technology sector, balancing commercial opportunity with governance responsibility. It also future-proofs both companies’ collaboration in the event that AGI—an AI system capable of outperforming humans across a wide range of tasks—becomes a reality.

As the AI industry accelerates toward AGI development, the new Microsoft–OpenAI agreement and the creation of OpenAI Group PBC set a precedent for how future AI companies might structure their governance to balance innovation, ethics, and global impact.