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OpenAI and Microsoft Reshape Partnership as IPO Plans Advance

Microsoft considers reducing its equity stake for extended AI access, while OpenAI adjusts revenue-sharing terms to finalize restructuring for a public offering.

OpenAI negotiating with Microsoft for new billion-dollar deal to clear path for future IPO: Report
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Overview

  • OpenAI and Microsoft are renegotiating their multibillion-dollar partnership to enable OpenAI's transition into a for-profit public benefit corporation and its pursuit of an IPO.
  • Microsoft, which has invested over $13 billion in OpenAI since 2019, is negotiating to reduce its equity stake in exchange for extended access to AI technologies beyond 2030.
  • OpenAI plans to lower the percentage of revenue it shares with Microsoft to enhance financial flexibility and attract new investors as part of its restructuring.
  • The renegotiation includes revising foundational contract terms originally set in 2019, reflecting shifts in both companies’ strategic priorities.
  • Microsoft’s January joint venture with Oracle and SoftBank to build $500 billion in AI data centers has influenced the evolving terms of its partnership with OpenAI.