Microsoft Stock Rises After $500 Billion OpenAI Partnership

Microsoft stock jumped over 4% during Tuesday’s intraday trading on October 28, 2025, after a major deal with OpenAI, the creator of ChatGPT. The tech giant reached an agreement valuing OpenAI at $500 billion and allowing it to convert to a public benefit corporation, giving OpenAI greater operational flexibility.

According to reports from Mint, Microsoft will hold a 27% stake, valued at $ 135 billion, in OpenAI Group PBC, which the OpenAI Foundation will manage. This transition marks OpenAI’s shift from a non-profit to a public benefit corporation, with its non-profit arm now called the OpenAI Foundation overseeing the for-profit division, OpenAI Group PBC, which manages around $130 billion.

OpenAI clarified that CEO Sam Altman will not receive any equity in the newly restructured organization. The company indicated there are no immediate plans for an initial public offering (IPO).

Meanwhile, Microsoft‘s share price rose sharply, reaching an intraday high of $553.72 and trading at $543.23 as of 12:45 p.m. EDT, up 2.18%. Over the past five years, Microsoft shares have delivered returns of over 168%, including a 27% gain in the last year. Year-to-date in 2025, the stock has increased by nearly 30%, with a 5.49% rise in the past month.

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The stock’s 52-week high was $555.45, while the low stood at $344.79, according to Marketwatch. As of that day’s trading, Microsoft’s market capitalization hit approximately $3.95 trillion, reflecting strong investor confidence and the company’s robust growth in the technology sector.