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Microsoft Nears Deal to Secure OpenAI Access Beyond AGI

Microsoft is negotiating new terms to extend its Azure ties into the AGI era, aligning the deal with OpenAI’s public-benefit conversion to unlock a SoftBank-led funding round.

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 9, 2025. REUTERS/Gonzalo Fuentes/File Photo
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OpenAI and Microsoft logos
OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • In advanced talks, Microsoft seeks to secure post-AGI access to OpenAI’s latest models beyond the existing contract’s cutoff upon an AGI declaration.
  • Negotiations focus on a prospective equity stake in the low to mid-30% range as OpenAI transitions into a public-benefit corporation.
  • Successful renegotiation is a prerequisite for completing a $40 billion SoftBank-led funding round, half of which hinges on Microsoft’s sign-off by year-end.
  • OpenAI has added Google Cloud, Oracle, and CoreWeave to its compute mix, challenging Microsoft’s exclusive hosting rights and pushing for diversified infrastructure.
  • The partnership has driven a near 35% surge in Azure revenue in the April–June quarter, underscoring the deal’s importance to Microsoft’s AI growth strategy.