A news report stated that OpenAI and Microsoft are drafting the terms of their multi-billion dollar partnership, in a move aimed at paving the way for OpenAI to launch a future initial public offering while maintaining Microsoft's access to advanced artificial intelligence models. These negotiations come at a time when OpenAI is seeking to enhance its investments and diversify its funding sources while aiming to maintain its technical independence.
According to the report, the discussions focus on the size of the stake that Microsoft will receive in OpenAI's profit-making entity in exchange for over $13 billion it has invested in the company since 2019. Microsoft is proposing to relinquish part of its stake in exchange for exclusive access to future technologies developed by OpenAI after 2030.
The two companies are also reviewing the terms of the original contract established when Microsoft first invested $1 billion in OpenAI in 2019, aiming to amend the cooperation terms in line with OpenAI's rapid expansion in the artificial intelligence sector. This comes at a time when both companies face challenges related to the cost of developing advanced AI models and the need for significant funding to build advanced technical infrastructure.
Microsoft did not comment on the report, while OpenAI did not respond to Reuters' requests for comment. These developments follow a report from "The Information" last week, which indicated that OpenAI had informed its investors of plans to reduce the share of revenues it shares with its major backers, as part of a financial restructuring aimed at enhancing its capacity for innovation and financial sustainability.
Last January, Microsoft adjusted some terms of the deal with OpenAI after signing a joint project with Oracle and Japan's SoftBank Group, aimed at building new AI data centers in the United States with investments of up to $500 billion, reflecting the rapid expansion in the AI sector.
On the trading front, shares of the tech giant Microsoft (NASDAQ: MSFT) rose by 1.88% or $8.27 per share, trading at levels of $447.00 during pre-market trading ahead of the opening of the US stock exchange.
