OpenAI and Microsoft have solved the big details of their complicated partnership — for now, anyway. Why it matters: The restructuring gives both companies more flexibility, but also lets them compete more effectively against each other.

The artificial intelligence company said the nonprofit that controlled the organization would receive a $130 billion stake in the new company.

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.

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 will still hold a stake of about $135 billion, or 27%, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit

To top it all off, TSMC's stock is relatively well-priced compared to many of its AI peers. The company's shares have a price-to-earnings ratio of 31.5, which is nearly on par with the average P/E ratio of 31 for the S&P 500 index and far lower than the tech sector's 47 average.

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