OpenAI and Microsoft are in negotiations to revise the terms of their multibillion-dollar partnership, a move reportedly aimed at allowing the creator of ChatGPT to proceed with a future initial public offering (IPO) while safeguarding the software giant’s access to cutting-edge artificial intelligence models, the Financial Times reported on Sunday.
A key point of discussion is the amount of equity in OpenAI’s new for-profit venture that Microsoft will receive in return for its investment of over $13 billion in the company to date, according to the report.
The report indicated that Microsoft is offering to relinquish a portion of its equity stake in exchange for continued access to new technologies developed beyond the 2030 deadline stipulated in their current agreement.
Furthermore, they are revising the terms of a broader contract, which was initially drafted when Microsoft first invested $1 billion in OpenAI back in 2019, the report stated.
Microsoft has declined to comment on the report’s findings. OpenAI did not immediately respond to requests for comment from Reuters.
The Information reported last week that OpenAI has informed investors of its intention to share a smaller percentage of its revenue with its largest backer as it progresses with its restructuring efforts.
In January, Microsoft modified certain terms of its agreement with OpenAI following its entry into a joint venture with Oracle and Japan’s SoftBank Group. This collaboration aims to establish up to $500 billion worth of new artificial intelligence data centers in the United States.
