OpenAI and Microsoft are said to be reevaluating the terms of their multibillion-dollar partnership in a move that could pave the way for OpenAI to go public, according to a recent report by the Financial Times.
At the heart of the talks is the question of how much ownership Microsoft will retain in OpenAI’s for-profit entity, given its substantial investment of over $13 billion. The tech giant is reportedly open to adjusting its equity stake in return for long-term access to OpenAI’s most advanced artificial intelligence innovations beyond 2030.
These negotiations also involve updates to broader contractual agreements originally established in 2019, when Microsoft made its first $1 billion investment in the AI research firm.
Neither Microsoft nor OpenAI has publicly commented on the reported discussions. However, previous reports from The Information suggest that OpenAI is planning to reduce the share of revenue it allocates to Microsoft as part of its broader corporate restructuring efforts.
This comes on the heels of Microsoft’s January adjustment to its existing agreement with OpenAI. That change followed the company’s announcement of a joint initiative with Oracle and Japan’s SoftBank Group to develop a large-scale network of AI data centers in the United States, potentially valued at up to $500 billion.
