Microsoft is prepared to abandon its high-stakes negotiations with OpenAI regarding the future of their alliance, the Financial Times reported on Wednesday. The tech giant has considered pausing discussions with the ChatGPT maker if the two sides remain unable to agree on critical issues such as the size of Microsoft’s future stake in OpenAI. According to the FT report, Microsoft plans to rely on its existing commercial contract to maintain access to OpenAI’s technology until 2030.
The negotiations between Microsoft and OpenAI have been under scrutiny, with OpenAI executives considering accusing Microsoft of anticompetitive behavior in their deal, as reported by the Wall Street Journal on Monday. Both companies are discussing revising the terms of Microsoft’s investment, including the future equity stake it will hold in the AI startup. In response to the WSJ report, the companies stated, “Talks are ongoing and we are optimistic we will continue to build together for years to come.”
Microsoft’s multi-billion dollar investments in OpenAI have been a key factor in positioning it as a leading player in the artificial intelligence space. OpenAI requires approval from Microsoft, its major backer, to complete its transition into a public-benefit corporation, which it believes will make it easier to raise more capital.
