OpenAI and Microsoft are currently engaged in negotiations to amend the terms of their substantial partnership, which is valued in the billions. This endeavor aims to facilitate the ChatGPT developer’s potential initial public offering (IPO), while simultaneously ensuring that Microsoft retains access to advanced AI technologies, according to a report by the Financial Times released on Sunday.
A key point of discussion is the amount of equity that Microsoft will obtain in OpenAI’s upcoming for-profit venture in return for its investment exceeding $13 billion (approximately Rs. 1,10,089 crore) thus far. The report indicates that Microsoft may be willing to forfeit part of its equity stake to secure access to new technologies that will be developed after the year 2030.
Additionally, the two companies are revisiting the terms of a broader contract that was initially established when Microsoft made a $1 billion (around Rs. 8,468 crore) investment in OpenAI in 2019.
Microsoft has refrained from commenting on the Financial Times report, while OpenAI has not yet responded to requests for comment from Reuters.
Earlier reports from The Information indicated that OpenAI plans to allocate a smaller portion of its revenue to its primary investor as the company continues its restructuring process.
In January, Microsoft modified certain aspects of its agreement with OpenAI following the announcement of a joint venture with Oracle and Japan’s SoftBank Group. This partnership aims to develop up to $500 billion (approximately Rs. 42,31,440 crore) worth of new AI data centers in the United States.
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