OpenAI established a for-profit arm valued at $500 billion Tuesday, doing so through a long-anticipated corporate restructure that provides Microsoft with a large stake in the new company as it looks to expand on its rapidly expanding artificial intelligence offerings.

Microsoft and OpenAI announced the long-awaited details of their new partnership agreement Tuesday morning — with concessions on both sides that keep the companies aligned but not in lockstep as they move into their next phases of AI development.

In the new agreement, Microsoft gets a 27% stake in OpenAI's for-profit business, the OpenAI Group PBC, worth around $135 billion.

Mustafa Suleyman, the CEO of Microsoft AI, even described the new product in those terms in the announcement. “Copilot Mode in Edge is evolving into an AI browser that is your dynamic, intelligent companion,

Microsoft, OpenAI, Oracle are looking to Wisconsin to achieve their goals for artificial intelligence. Here's some similarities and differences.