OpenAI and Microsoft reportedly renegotiating partnership to allow for potential IPO

The news: OpenAI and Microsoft are reworking the terms of their multibillion-dollar partnership, according to a report from the Financial Times. Background: OpenAI announced last week that it is moving forward with a restructuring plan to create a for-profit public benefit corporation, controlled by its nonprofit parent. OpenAI needs sign-off from Microsoft — which has invested more than $13 billion in the ChatGPT maker since 2019 — to proceed with the plan. What’s new: The Financial Times reported that Microsoft could take a smaller equity stake in the new entity in exchange for extended access to OpenAI’s technology beyond the… Read More

May 11, 2025 - 18:42

OpenAI and Microsoft reportedly renegotiating partnership to allow for potential IPO

Microsoft CEO Satya Nadella speaks at OpenAI DevDay on Nov. 6, 2023 as Sam Altman looks on. (GeekWire File Photo / Todd Bishop)

The news: OpenAI and Microsoft are reworking the terms of their multibillion-dollar partnership, according to a report from the Financial Times.

Background: OpenAI announced last week that it is moving forward with a restructuring plan to create a for-profit public benefit corporation, controlled by its nonprofit parent. OpenAI needs sign-off from Microsoft — which has invested more than $13 billion in the ChatGPT maker since 2019 — to proceed with the plan.

What’s new: The Financial Times reported that Microsoft could take a smaller equity stake in the new entity in exchange for extended access to OpenAI’s technology beyond the previously agreed upon 2030 cutoff.

Microsoft provides computing capacity for OpenAI’s services — and uses OpenAI technology in its own products, including Microsoft Copilot.
The Information reported last week that OpenAI plans to reduce the percentage of revenue it shares with Microsoft as part of the restructuring.
Also on the table: The restructuring could enable a future OpenAI IPO, according to the Financial Times.

Previously: Microsoft and OpenAI tweak the terms of their cloud deal, enabling $500B Stargate AI project