Microsoft and OpenAI are in the process of renegotiating the terms of their multi-billion-dollar alliance, a move aimed at enabling the ChatGPT creator to eventually go public while ensuring Microsoft retains access to cutting-edge AI technology, according to a report by the Financial Times.
A central point in the ongoing discussions is how much equity Microsoft will hold in OpenAI’s restructured for-profit entity, following its cumulative investment of over $13 billion. The report notes that Microsoft may relinquish a portion of its stake in return for continued access to advanced AI models developed beyond 2030.
This restructuring also involves an overhaul of the original agreement from 2019, when Microsoft made its first $1 billion investment in OpenAI. The broader terms of the collaboration are being updated to reflect the evolving AI landscape and OpenAI’s long-term vision, including a potential initial public offering.
While Microsoft declined to comment, and OpenAI has not yet responded, the ongoing talks come amid other strategic shifts. According to The Information, OpenAI has informed its investors that it plans to reduce the share of future revenue allocated to Microsoft as it moves forward with its reorganization.
Earlier this year, Microsoft also revised parts of its agreement with OpenAI following the announcement of a joint venture with Oracle and SoftBank to build AI-focused data centers in the U.S., a project potentially worth up to $500 billion.
These developments highlight how key players in the AI sector are adjusting their partnerships and strategies to balance growth, control over technology, and commercial ambitions like IPOs.
