According to the Financial Times, the companies are deep in negotiations to restructure their deal. This overhaul aims to prepare OpenAI for a potential initial public offering (IPO) while securing Microsoft’s long-term access to next-generation AI technologies.

Microsoft Weighs Equity Against Future AI Access

A central issue is how much equity Microsoft will receive in OpenAI’s new for-profit entity, given its $13 billion investment to date. Interestingly, Microsoft is reportedly open to giving up some of its stake in exchange for continued access to technologies developed beyond 2030.

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This rebalancing could mark a strategic shift: less equity in return for guaranteed innovation rights.

Revising the Terms of a Long-Term Alliance

Their partnership dates back to 2019, when Microsoft first invested $1 billion in OpenAI. Now, that original agreement is also on the table for revision as OpenAI seeks greater independence and a more IPO-friendly structure.

Last week, The Information reported that OpenAI plans to share a smaller portion of revenue with Microsoft under its new restructuring plans.

Meanwhile, Microsoft’s broader AI strategy includes a massive $500 billion joint venture with Oracle and SoftBank, announced in January, to build new AI data centers across the U.S.

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