Microsoft and OpenAI Revise AI Partnership Terms
Microsoft and OpenAI are rewriting the terms of their multibillion-dollar partnership in a negotiation designed to allow the ChatGPT maker to launch a future Initial Public Offering (IPO) while protecting Microsoft’s access to cutting-edge AI models, the Financial Times reported on Sunday.
The companies are also revising terms of a wider contract, first drafted when Microsoft initially invested $1 billion into OpenAI in 2019. Microsoft declined to comment on the report, while OpenAI did not immediately respond to Reuters’ requests for comment.
This development comes after OpenAI told investors it will share a smaller fraction of revenue with its largest backer as it moves ahead with restructuring, as reported by The Information last week. In January, Microsoft changed some terms of a deal with OpenAI after entering a joint venture with Oracle and Japan’s SoftBank Group to build up to $500 billion of new artificial intelligence data centers in the US.
The restructuring of the partnership between Microsoft and OpenAI highlights the evolving landscape of artificial intelligence investments and the complex relationships between major tech players.
