Microsoft and OpenAI rework billion dollar deal
As OpenAI eyes an IPO, it’s renegotiating how much of its AI tech Microsoft can access in the future.
OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership in a move designed to allow the ChatGPT maker to pursue a future public listing, while ensuring Microsoft retains access to its most advanced AI technology.
According to the Financial Times, the talks are centred around adjusting Microsoft’s equity stake in OpenAI’s for-profit arm.
The software giant has invested over US$13 billion in OpenAI and is reportedly prepared to reduce its stake in exchange for extended access to AI developments beyond the current 2030 agreement.
The revisions also include changes to a broader agreement first established in 2019 when Microsoft committed US$1 billion to the partnership.
The restructuring reflects OpenAI’s shift in strategy as it prepares for potential independence from its largest investor. Recent reports suggest the company plans to share a smaller portion of its future revenue with Microsoft, instead of maintaining current terms.
Microsoft has declined to comment on the ongoing negotiations, and OpenAI has yet to respond.
The talks follow Microsoft’s separate US$500 billion joint venture with Oracle and SoftBank to build AI data centres in the US, further signalling the strategic value of securing long-term access to cutting-edge models.
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