Microsoft and OpeAi Announce the ‘Next Phase’ of Their Partnership

On September 11, 2025, Microsoft and OpenAI announced that their collaboration is moving into what they describe as the “next phase.” The two companies signed a non-binding Memorandum of Understanding (MOU), a formal but preliminary step that lays the foundation for a future, definitive agreement. While the details of that final agreement are still to be worked out, the MOU signals both sides’ intent to keep building on a relationship that has already shaped much of the modern AI landscape.

Microsoft highlighted that the move reflects continuity rather than a reset. Over the past several years, the partnership has delivered breakthroughs such as powerful language models, developer tools, and enterprise-ready AI services built on Microsoft’s Azure cloud platform. By reaffirming their alliance, the companies are signaling that this progress is only the beginning.

For OpenAI, the announcement offers reassurance that its close ties with Microsoft remain steady even as the organization adapts to new realities in the AI industry. For Microsoft, it represents a chance to maintain its role as the primary business partner for one of the most influential AI research labs in the world. The MOU does not change day-to-day operations immediately, but it underscores a shared vision for how their joint work will continue to shape the technology sector.

Key changes and implications

The most visible shift in this new phase is structural. OpenAI is preparing to transition into a public benefit corporation, a model that allows it to raise capital more flexibly while still being tied to its nonprofit roots. The original nonprofit will keep control and hold significant equity, reportedly valued at more than $100 billion, ensuring that OpenAI’s founding principles remain part of its identity even as it grows.

Another important change lies in how the company manages its technical backbone. Until now, OpenAI’s work has largely relied on Microsoft’s Azure cloud, but the updated framework gives it the ability to use other providers as well. That added freedom could help the lab secure the enormous compute resources needed to train ever-larger models, while still maintaining Azure as a primary partner.

Regulatory oversight will also shape this transition, with officials in California and Delaware expected to review the restructuring in detail. Within the agreement, governance takes on a central role, not only to ensure transparency but also to protect the organization’s founding mission. Both Microsoft and OpenAI emphasize that while the corporate structure may evolve, the guiding principle remains unchanged: the pursuit of artificial general intelligence that benefits humanity. These changes are more than corporate paperwork. They set the stage for OpenAI to scale its research and infrastructure at a pace that matches the demands of the AI race, while keeping Microsoft closely aligned as a strategic partner in the years ahead.