AsianFin -- OpenAI is in advanced negotiations with Microsoft to restructure their multibillion-dollar partnership, aiming to clear the path for a future initial public offering, according to a report by the Financial Times on Sunday.
A central focus of the talks is determining how much equity Microsoft will retain in OpenAI’s for-profit arm in exchange for the more than $13 billion it has invested so far. Sources told the FT that Microsoft is willing to reduce its equity stake in return for long-term access to OpenAI’s most advanced technologies developed beyond 2030.
The discussions also involve a broader revision of their existing agreement, originally signed in 2019 when Microsoft first invested $1 billion in the then-nonprofit AI research lab.
Microsoft declined to comment on the report, and OpenAI has not yet responded to media inquiries.
The negotiations come as OpenAI reportedly prepares for a corporate restructuring that would reduce the share of revenue allocated to Microsoft, according to The Information. That shift signals OpenAI’s intent to gain more financial and strategic flexibility as it eyes public markets.
In January, Microsoft quietly modified parts of its deal with OpenAI after launching a joint venture with Oracle and Japan’s SoftBank Group to invest up to $500 billion in building AI-focused data centers in the United States.
The renegotiation underscores Microsoft’s efforts to maintain privileged access to OpenAI’s breakthrough models while giving the AI firm room to evolve its business model independently.
