Microsoft (MSFT) and OpenAI Revise Collaboration for Future IPO

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May 12, 2025
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OpenAI, along with its investor Microsoft (MSFT, Financial), is renegotiating their partnership terms to facilitate OpenAI's potential future public listing while ensuring Microsoft's continued access to its AI technologies. The update in their collaboration involves Microsoft relinquishing part of its equity in OpenAI's newly profitable ventures. In exchange, Microsoft aims to secure access to AI models developed post-2030, aligning with the expiration of a crucial contract between the two entities.

By doing so, both companies aim to maintain a strategic and mutually beneficial relationship, capitalizing on AI advancements and ensuring a smooth potential transition for OpenAI into the public market.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.