Microsoft is close to getting a giant new equity stake in OpenAI. It could be worth at least $150 billion.

Summary

Microsoft is poised to receive a very large new equity stake in OpenAI after the startup said it will restructure into a for-profit public benefit corporation. The shift creates tradable stock and clears the way for investors to take conventional equity positions.

Microsoft first put $1bn into OpenAI in 2019 and followed with much larger investments in early 2023. Negotiations suggest Microsoft could receive roughly 30% (or about a third) of the new equity — which, on employee-led secondary pricing that values OpenAI near $500bn, would translate into at least a $150bn stake for Microsoft.

Key Points

Microsoft’s initial $1bn 2019 investment and further billions in 2023 are now set to convert into a very large equity position.
OpenAI is restructuring into a for-profit public benefit corporation to enable traditional stock issuance and fundraising.
Reports indicate Microsoft may receive around 30%–33% of the new equity, worth roughly $150bn–$165bn at a $500bn valuation.
If realised, this would be a more-than-tenfold return for Microsoft achieved in only a few years.
The companies’ original deal included profit-sharing units and Azure credits; the restructure resolves fundraising limits tied to OpenAI’s former nonprofit-like status.
Analysts say the move turns an uncertain partnership into a major strategic and financial asset for Microsoft.

Context and relevance

This development matters for investors, enterprise customers and competitors. A huge Microsoft stake in OpenAI would concentrate more of the AI stack — models, distribution and cloud — around one dominant partner, shaping competition in cloud services, AI product integration and corporate valuations. It also sets a fast precedent for how early AI investors can realise value and could attract regulatory scrutiny given the scale.

Why should I read this?

Because this tiny-looking early bet just morphed into a potential $150bn+ headline — if you care who controls the future of AI, cloud deals or big-tech market moves, this is a biggie. We read the full piece so you don’t have to: Microsoft could soon be sitting on one of the fastest, largest returns in recent tech history.