Microsoft and OpenAI are revisiting the terms of their multibillion-dollar partnership, according to a Financial Times report. The changes are being made to prepare for a potential initial public offering (IPO) for OpenAI while securing Microsoft’s continued access to the latest AI technologies.
A key point in the negotiations is how much equity Microsoft will receive in OpenAI’s new for-profit arm. The tech giant has invested over $13 billion into the company so far. Reports suggest Microsoft may give up some of its stake in return for access to technology developed after 2030.
The companies are also revising terms from a previous agreement, initially made when Microsoft invested $1 billion into OpenAI in 2019.
Neither Microsoft nor OpenAI immediately responded to requests for comment on the matter.
OpenAI has recently informed its investors that it plans to reduce the share of revenue it offers to Microsoft, as part of the restructuring process, according to a report from The Information last week.
Earlier this year, Microsoft modified its agreement with OpenAI after forming a joint venture with Oracle and SoftBank to create up to $500 billion in new AI data centers across the United States.
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