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.