OpenAI and Microsoft Renegotiate Partnership Ahead of Potential IPO
OpenAI is recalibrating its relationship with Microsoft as it eyes a potential public debut, according to a Financial Times report. The ChatGPT creator is in talks with Microsoft to redefine the terms of their strategic alliance, which has seen Microsoft invest over $13 billion since 2019.
At the heart of the negotiations is Microsoft’s equity stake in OpenAI’s for-profit entity. The discussions aim to address ownership rights, long-term access to OpenAI’s future AI models, and the roadmap beyond their current agreement, which runs through 2030. Microsoft is reportedly open to reducing its equity stake in exchange for continued access to OpenAI’s next-generation technologies.
The renegotiation also includes revisions to broader contractual agreements originally set when Microsoft invested its first $1 billion into OpenAI. This deal cemented Microsoft’s role as both a financial backer and strategic infrastructure partner, providing cloud computing power via its Azure platform.
The companies have declined to publicly comment on the report. A separate report from The Information stated that OpenAI has privately told investors it plans to reduce the share of revenue it distributes to Microsoft under the current arrangement, as part of broader restructuring efforts aimed at ensuring OpenAI’s long-term independence and viability ahead of a possible IPO.
Microsoft’s influence in OpenAI’s development has grown significantly since 2019. In January, Microsoft amended parts of its deal with OpenAI after announcing a joint venture with Oracle and SoftBank Group to construct up to $500 billion worth of new AI data centers in the US, indicating its expanding ambitions in the generative AI ecosystem.
