Prime Highlights
- Microsoft’s stock jumped over 4% after the company announced a $500 billion valuation deal with OpenAI, marking a major step in its AI investment strategy.
- The restructuring of OpenAI into a Public Benefit Corporation (PBC)aims to balance profitability with its mission of advancing ethical and transparent AI development.
Key Facts
- Microsoft will hold a 27% stake, valued at $135 billion, in the newly formed OpenAI Group PBC, while the OpenAI Foundationwill retain about $130 billion.
- Following the announcement, Microsoft’s market value reached $3.95 trillion, with its stock price rising 65% year-to-date in 2025.
Background
Microsoft’s stock jumped over 4% on Tuesday, October 28, 2025, climbing more than 4% during intraday trading on Wall Street after the tech giant finalized a $500 billion valuation deal with artificial intelligence company OpenAI, the maker of ChatGPT.
According to the announcement, OpenAI will restructure its operations into a Public Benefit Corporation (PBC) named OpenAI Group PBC. This move will give the company greater freedom to manage its business while keeping its non-profit mission. The non-profit arm will now be called the OpenAI Foundation, which will hold about $130 billion in the new for-profit structure.
Microsoft will own a 27% stake, valued at $135 billion, in the restructured OpenAI Group PBC. The new setup focuses on supporting long-term AI development while maintaining transparency and social responsibility. OpenAI’s Chief Executive Officer, Sam Altman, will not receive any equity in the new entity, and the company has no current plans for a public listing, according to a report by Reuters.
Following the announcement, Microsoft shares touched an intraday high of $553.72 before trading at $543.23, up 2.18% from the previous session’s close of $531.52. Over the past five years, Microsoft’s stock has gained over 168%, with a 27% rise in the last year.
As of Tuesday’s market session, Microsoft’s market value has hit $3.95 trillion. The company’s share price has risen by 29.65% year-to-date in 2025, an indication of the investors’ trust in the company’s move towards AI-related partnerships and innovation.
