OpenAI and Microsoft Renegotiate Partnership Amid Restructuring for IPO
- OpenAI is negotiating with Microsoft in 2025 to revise their multibillion-dollar partnership and prepare for a future IPO.
- The talks follow Microsoft's $13 billion investment since 2019 and concern revenue sharing and access to AI technology beyond 2030.
- OpenAI plans to reduce the revenue share paid to Microsoft from 20% currently to about 10% by the end of this decade, while keeping key partnership terms through 2030.
- An OpenAI spokesperson indicated the company is actively working on restructuring efforts and leadership updates, with expectations to complete the specifics of the recapitalization soon.
- The renegotiation aims to secure Microsoft's continued access to OpenAI's advancements after 2030 and supports OpenAI's restructuring towards becoming a public benefit corporation.
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OpenAI negotiates with Microsoft for new funding and future IPO: report
OpenAI and Microsoft are rewriting terms of their multibillion-dollar partnership in a negotiation designed to allow the ChatGPT maker to launch a future IPO, while protecting the software giant's access to cutting-edge AI models, the Financial Times reported on Sunday.
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