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.

Startup’s conversion clears obstacle for potential initial public offering, gives Microsoft 27% stake in new public-benefit corporation.

Microsoft and OpenAI announced Monday a series of new business partnerships aimed to advance artificial intelligence capabilities in U.S. commerce.

The new agreement values Microsoft’s 27% stake at $135 billion and extends its IP rights through 2032, giving Microsoft investors “upside optionality.”

Amazon is the pioneer in infrastructure-as-a-service with its Amazon Web Services business. Over the last 20 years or so, it's grown to become a $120 billion business, far bigger than Microsoft's $75 billion Azure cloud business or Alphabet's $50 billion Google Cloud.

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.

In a press release, Microsoft opened a window on how much it has invested in OpenAI. It also offers a look at the AI developer’s significant losses.

Microsoft is drawing a bright line at romantic, flirtatious and erotic content, even for adults, when it comes to its Copilot chatbot, the company’s AI CEO said in an interview.