OpenAI, Microsoft Exploring New Financing and IPO Prospects, FT Report
OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership in a move that could pave the way for OpenAI to launch a future IPO, while also safeguarding Microsoft’s access to advanced AI models, according to a report from the Financial Times on Sunday.
A key point of negotiation is the equity stake that Microsoft will hold in OpenAI’s newly structured for-profit arm. The tech giant has already invested over $13 billion in the company, and discussions are centered on how much of this stake will be adjusted in exchange for continued access to emerging AI technologies beyond 2030.
Additionally, the two companies are revising broader terms of their partnership, originally set out when Microsoft invested $1 billion in OpenAI back in 2019. The updated agreement reflects the evolving nature of their collaboration and the rapid advancement of AI technology.
Microsoft declined to comment on the details of the negotiations, and OpenAI has not yet responded to inquiries from Reuters.
OpenAI has reportedly informed investors that it plans to reduce the share of revenue it gives to Microsoft, as it continues to restructure its financial arrangements. This comes after Microsoft adjusted the terms of its deal with OpenAI earlier this year following its joint venture with Oracle and Japan’s SoftBank Group to build up to $500 billion in new AI data centers across the US.
