OpenAI and Microsoft are renegotiating their multibillion-dollar deal to support OpenAI’s potential IPO while ensuring Microsoft’s continued access to cutting-edge AI.
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| OpenAI and Microsoft are redefining their AI partnership, adjusting equity stakes and access rights as OpenAI eyes a public listing and Microsoft secures long-term tech benefits. Image: CH |
San Francisco, USA — May 12, 2025:
OpenAI and Microsoft are restructuring the terms of their multi-billion-dollar partnership in a strategic move to facilitate OpenAI’s future initial public offering (IPO), according to a report by the Financial Times. The renegotiations are aimed at balancing OpenAI’s goal of financial independence and Microsoft’s need for sustained access to the company's groundbreaking artificial intelligence technologies.
One of the central issues is how much equity Microsoft will retain in OpenAI's for-profit business. The tech giant has already invested over $13 billion into OpenAI and may reduce its stake in return for continued access to emerging AI models beyond the current contractual limit set for 2030.
The negotiations are also updating the broader agreement originally formed when Microsoft invested $1 billion in OpenAI in 2019. This revised deal is expected to reflect the shifting dynamics in the AI industry and OpenAI's aspirations to become a publicly traded firm.
Neither Microsoft nor OpenAI responded to media inquiries about the reported talks. However, this development follows recent reporting by The Information, which revealed that OpenAI has informed investors of its plans to reduce the share of revenue granted to Microsoft as it restructures internally.
Earlier this year, Microsoft also modified aspects of its agreement with OpenAI after announcing a joint venture with Oracle and Japan’s SoftBank Group to develop AI data centers in the U.S. valued at up to $500 billion.
As OpenAI continues to lead in generative AI development, this renegotiation marks a pivotal moment for the future of AI commercialization and tech industry partnerships on a global scale.