Key Takeaways
- OpenAI and Microsoft are reportedly discussing changes to their major partnership agreement.
- This comes as OpenAI plans to restructure into a for-profit company managed by its non-profit board.
- Microsoft, a major investor ($13 billion+), needs to approve OpenAI’s restructuring.
- Potential deal changes could see Microsoft getting longer access to OpenAI’s tech for a smaller ownership share.
- The new structure might also allow OpenAI to pursue an initial public offering (IPO) eventually.
OpenAI and its key partner, Microsoft, are reportedly hashing out new terms for their significant financial relationship.
This discussion follows OpenAI’s recent announcement about restructuring. The company plans to become a for-profit business, though it will still be overseen by its original non-profit entity.
Since Microsoft has invested over $13 billion in the AI powerhouse since 2019, its agreement is crucial for OpenAI’s restructuring plan to move forward.
According to a report from the Financial Times, one possibility is that Microsoft might accept a smaller ownership stake in the new OpenAI structure.
In return, Microsoft could gain access to OpenAI’s cutting-edge technology for a longer period, potentially beyond a previously agreed 2030 deadline.
Microsoft currently supplies the essential computing power for OpenAI’s services, like ChatGPT, and integrates OpenAI’s technology into its own products, such as Microsoft Copilot.
Reports cited by GeekWire also suggest OpenAI might aim to share less of its revenue with Microsoft under the new arrangement.
This significant restructuring, if approved, could also clear the path for OpenAI to eventually go public with an IPO, the Financial Times noted.
