Microsoft and OpenAI have been restructured for the public good.

Microsoft and OpenAI announced on Tuesday that they have reached an agreement allowing OpenAI to become a public benefit corporation. This new structure positions OpenAI as a $500 billion asset, paving the way for the company to go public.

Microsoft has valued its stake in OpenAI Group PBC at approximately $135 billion or 27%. The control of this new structure will be provided by the non-profit OpenAI Foundation.

Reactions from analysts and investors have also been notable. Gil Luria, head of technology research at Da Davidson, stated, “The restructuring of OpenAI and the agreement with Microsoft is a significant milestone toward the company’s goal of Artificial General Intelligence (AGI). This resolves the issue of structuring as a long-term non-profit organization and clarifies ownership rights of the technology with Microsoft.” Luria also mentioned that this new structure will make OpenAI's investment path clearer, thus facilitating additional funding.

Art Hogan, chief market strategist at B Riley Wealth, commented, “In the last few weeks, everyone has stated what they will do with OpenAI, and this has turned into a self-fulfilling loop. Therefore, when looking at the news, whether it’s Adobe or today Microsoft, you have the potential to be a more significant player in the AI revolution.”