Microsoft (MSFT) shares rose on Tuesday after reaching a $135 billion deal with software giant OpenAI.

The ChatGPT developer will restructure as a public benefit company, with Microsoft taking a 27% stake in OpenAI. The restructuring will pave the way for OpenAI to become a publicly traded company.

OpenAI has signed a deal to acquire Microsoft’s Azure cloud computing service for $250 billion.

Microsoft and OpenAI have been partners since 2019. The new deal preserves key elements of their partnership. OpenAI remains a Frontier Model partner of Microsoft and retains exclusive intellectual property rights and Azure application programming interface (API) rights until it reaches artificial intelligence (AGI).

Microsoft rose 2% today to close at 542.07. It had hit a high of 553.72 earlier in the session.

According to the IBD MarketSurge chart, Microsoft stock is below a cup with a buy point of 555.45.

Microsoft stock is on two IBD stock lists: Long-Term Leaders and Technology Leaders.