Microsoft and OpenAI are renegotiating their multi-billion dollar partnership to facilitate OpenAI's potential IPO while ensuring Microsoft's continued access to cutting-edge AI technologies. The discussions involve Microsoft possibly relinquishing some of its OpenAI equity to maintain access to OpenAI's products and models beyond 2030. Originally, Microsoft invested over $13 billion in OpenAI since 2019, making it OpenAI's largest financial supporter.
Key negotiation points include how much equity Microsoft will receive in OpenAI's newly structured profit-driven business. Sources indicate Microsoft is willing to forgo some equity in exchange for post-2030 technology access. The companies are also revising a broader contract initially drafted during Microsoft's $1 billion investment in 2019.
OpenAI has informed investors that it will share a small portion of revenue with its largest supporters as its restructuring progresses. In January, Microsoft already amended parts of its agreement with OpenAI following the formation of a joint venture with Oracle and Japan's SoftBank Group.
This partnership revision is crucial for OpenAI's restructuring and future, especially as global AI competition intensifies. Originally a non-profit, OpenAI plans to transition to a profit-oriented public benefit corporation, balancing social good with profitability, while retaining a non-profit board.
