OpenAI is requesting major financial concessions from Microsoft (MSFT, Financials) as the artificial intelligence startup moves to restructure its for-profit unit, according to a report from The Information.
OpenAI reportedly wants Microsoft to forgo its rights to future profits in exchange for a 33% stake in a newly structured entity. It is also seeking to exempt its acquisition of AI coding firm Windsurf from Microsoft's intellectual property access agreements.
The Information report said OpenAI still requires Microsoft's approval to move forward with the restructuring, which would convert the unit into a public-benefit corporation. The request comes amid growing tensions, with The Wall Street Journal reporting that OpenAI executives considered accusing Microsoft of anticompetitive behavior.
Microsoft, OpenAI's largest investor since 2019, has integrated the startup's technology into its core product suite. But recent signs suggest Microsoft has stepped back from the partnership as the restructuring effort progressed slowly.
Separately, OpenAI has reportedly approached Japan's SoftBank Group Corp. as a potential new investor to support the public-benefit transition.
Investors will be watching closely for Microsoft's next move and whether U.S. regulators become involved in reviewing the partnership structure.
