MSFT Stock Jumps On OpenAI Partnership Renewal, Stake Valued At $135 Billion – Market Cap Crosses $4 Trillion Again

• The agreement coincides with OpenAI’s transition to a public benefit corporation.
• Under the new agreement, Microsoft holds approximately a 27% stake in OpenAI Group PBC.
• The jump in Microsoft shares on Tuesday drove the company’s market cap over $4 trillion for the second time in 2025.

OpenAI (OPENAI) announced on Tuesday that it is renewing and expanding its partnership with Microsoft (MSFT), solidifying the technology giant’s role as a major shareholder in the AI startup. 

MSFT’s stock gained as much as 3% at market open, with retail sentiment around the company moving higher within ‘bullish’ territory as chatter jumped to ‘high’ from ‘normal’ levels over the past day. Retail sentiment around OPENAI, which is not a publicly traded company, remained in ‘bearish’ territory. 

MSFT’s stock price hit an intra-day high of $553.72, just 0.3% shy of its record high of $555.45 seen in July, earlier this year, and crossed the $4 trillion mark for the second time this year.

Under the new agreement, Microsoft holds approximately a 27% stake in OpenAI Group PBC, including shares held by employees, investors, and the OpenAI Foundation, valuing the stake at roughly $135 billion. The agreement coincides with OpenAI’s transition to a public benefit corporation (PBC).

What’s Changed For Microsoft?

Microsoft retains exclusive IP rights and Azure API exclusivity until artificial general intelligence (AGI) is reached, with certain rights extending through 2032. The company also maintains research IP until AGI verification or 2030, while consumer hardware IP remains outside this arrangement. OpenAI will buy an additional $250 billion in Azure services, though Microsoft no longer holds the right of first refusal as the startup’s sole compute provider.

Moreover, OpenAI can collaborate with other companies on products, but API-based products remain exclusive to Microsoft Azure. Meanwhile, Microsoft can independently pursue AGI, alone or with others, under compute and safety limits.

OpenAI can also release its open-weight AI models and provide API access to U.S. national security customers, regardless of cloud provider.

MSFT’s stock has gained 28% this year and around 26% over the past 12 months.

Read also: Bitcoin Holds Near $114K Ahead of Fed Rate Decision — SOL, XRP Edge Higher

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