Microsoft's stake in OpenAI

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> OpenAI restructures into for-profit Public Benefit Corporation; nonprofit Foundation retains 26% stake (+ warrants) & board control

> before: MS holds 49% profit entitlement with 100× cap; now: expected to capture ~20% of OpenAI revenue via Azure + Copilot

> retains exclusive API + model IP rights through 2032 or till AGI, but loses veto power + cloud exclusivity

> restructure enabled OpenAI's $38B AWS compute deal

> OpenAI now free to raise capital, may IPO upto $1T valuation by 2027 (Reuters)

> ~$90B spend since September, with $33B spent in compute deals with Nebius, Nscale, CoreWeave, & Lambda in Oct

> long-term multi-year contracts to secure sovereign GPU access across regions

> accelerating infra buys before regulatory doors close - hedging against future AGI-related chip bans

> collectively securing access to >300K Nvidia GPUs (GB300, Blackwell NVL72, H100) across multiple partners

> already surpassed 2024 total deals (+ ~$1B invested)

> 16 new since Sept, ~5.5× more than 2022

> playbook: fund the AI ecosystem to expand compute demand - every $ invested flows back as GPU sales, creating closed loop of capital

> many portfolio companies loop back as GPU customers + some already spending tens of millions on Nvidia compute

> most recent bets on early-stage infra & cloud startups (Crusoe, Phaidra, Emerald AI)

> also making regional pushes, with $2.7B UK AI-startup program + $100B Openai partnership (10 GW systems)

> Huang frames it as a “new industrial revolution”; Nvidia aims to power it & profit twice: equity upside + chip sales