Microsoft (MSFT, Financial) is reportedly in discussions with OpenAI to renegotiate their collaboration agreement, potentially paving the way for OpenAI's future initial public offering (IPO). Following this news, Microsoft's stock rose by 2.4% to $449.26. The revised agreement is said to involve IPO terms and the exclusive agreement established in 2019, when Microsoft invested billions into OpenAI, becoming its primary cloud service provider.
Despite the speculation, neither company has officially confirmed the renegotiation. OpenAI has not responded to inquiries, and Microsoft's spokesperson declined to comment. Currently, Microsoft has invested over $13 billion in OpenAI, though the exact shareholding in its revenue-generating division remains unclear. Rumors suggest Microsoft might cede some equity for priority access to future AI technologies post-2030.
OpenAI recently abandoned plans to integrate its business under a profit-driven holding, hinting at a more flexible, socially responsible future direction. It also plans to share revenue with Microsoft, reinforcing strategic ties. Although Microsoft is no longer OpenAI’s sole cloud provider, OpenAI has committed to significant new endeavors on the Azure platform.
Microsoft's stock also gained from a positive shift in U.S.-China trade policy, with a temporary reduction in tariffs on Chinese imports, boosting market optimism. The S&P 500 rose 3.26%, while the NASDAQ surged 4.35%, reflecting investor confidence in AI and technological growth potential.
