Microsoft is prepared to abandon its high-stakes negotiations with OpenAI regarding their alliance’s future, the Financial Times reported on Wednesday. The tech giant has considered pausing discussions with the ChatGPT maker if they cannot agree on critical issues such as 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.
Microsoft and OpenAI did not immediately respond to Reuters’ requests for comment on the report. The multi-billion dollar investments Microsoft has made 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.
The companies had previously discussed revising the terms of Microsoft’s investment, including the future equity stake it will hold in the AI startup. ‘Talks are ongoing and we are optimistic we will continue to build together for years to come,’ the companies said in a statement in response to the WSJ report. OpenAI executives have considered accusing Microsoft of anticompetitive behavior in their deal, according to the Wall Street Journal.
The potential shift in Microsoft’s strategy comes as the company continues to navigate its significant investments in the AI sector. The outcome of these negotiations could have significant implications for both companies and the broader AI industry.
