OpenAI and Microsoft are renegotiating their multi-billion dollar partnership. They aim to allow OpenAI to launch an IPO in the future. At the same time, Microsoft wants to secure access to OpenAI’s advanced AI models. The Financial Times reported this on Sunday.
A key point of discussion is how much equity Microsoft will get in OpenAI’s new for-profit venture. This is in exchange for the $13+ billion Microsoft has already invested. The report stated, “Microsoft is offering to give up some of its equity stake in exchange for access to new technology developed beyond the 2030 cutoff.”
Microsoft and OpenAI are also revising the wider contract. This contract was initially drafted when Microsoft invested $1 billion in OpenAI in 2019.
Microsoft declined to comment, and OpenAI did not immediately respond to requests for comment.
OpenAI has informed investors about restructuring plans. The Information reported last week that OpenAI “will share a smaller fraction of revenue with its largest backer as it moves ahead with restructuring”.
Microsoft adjusted some terms of its deal with OpenAI in January. This occurred after they entered a joint venture with Oracle and Japan’s SoftBank Group. They plan “to build up to $500 billion of new artificial intelligence data centers in the U.S.”
Click here for more Technology news.