Microsoft Holds Out on OpenAI’s Restructuring Plan
Microsoft Corp., having invested $13.75 billion in OpenAI, remains the largest investor still unconvinced by the ChatGPT developer’s restructuring plans, according to sources familiar with the matter. The software giant is negotiating details of OpenAI’s proposal to ensure its investment is adequately protected.
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OpenAI revealed plans to restructure its for-profit division as a public benefit corporation but later decided to maintain the current nonprofit control structure. CEO Sam Altman stated that this decision followed discussions with civic leaders and state attorneys general. Microsoft is actively negotiating with OpenAI, particularly regarding its licensing and revenue-sharing agreements.
The restructuring requires approval from OpenAI insiders, Microsoft, and early investors. SoftBank Group Corp. has expressed willingness to proceed with its planned $30 billion investment under the proposed structure. However, Microsoft’s approval remains crucial due to its significant investment and unique relationship with OpenAI.
OpenAI faces additional challenges, including a legal dispute with co-founder Elon Musk, who has sued to block the restructuring. Musk’s lawsuit is ongoing, and he previously made an unsuccessful $97.4 billion bid to acquire OpenAI’s nonprofit assets.
As negotiations continue, OpenAI aims to finalize the restructuring details soon. The company’s revised plan maintains nonprofit control while aiming to attract investors with a simplified for-profit structure.
