OpenAI and Microsoft are reportedly redefining the terms of their strategic partnership as OpenAI positions itself for a potential initial public offering (IPO), according to a Financial Times report published on Sunday.
The ongoing discussions aim to revise the equity structure, ownership rights, and access to future AI technologies, building on Microsoft’s significant financial commitment to the ChatGPT creator.
"At the heart of the talks is how much equity Microsoft will retain in OpenAI’s for-profit entity in return for its substantial investment, which has exceeded $13 billion since 2019."
This new agreement is expected to reshape long-term access rights to OpenAI’s next-generation artificial intelligence models and reframe the collaboration roadmap beyond 2030.
"According to the report, Microsoft is open to reducing its equity stake in exchange for continued access to any next-generation technologies OpenAI develops after the cutoff year."
The restructuring would allow Microsoft to retain technological benefits without holding an oversized stake, enabling OpenAI to appear more independent to investors and regulators ahead of its IPO.
"The renegotiation also includes revisions to broader contractual agreements originally set when Microsoft invested its first $1 billion into OpenAI."
That initial deal granted Microsoft the dual role of financial investor and cloud infrastructure provider, with OpenAI relying heavily on Microsoft's Azure platform for computing power.
"A separate report from The Information last week stated that OpenAI has privately told investors it plans to reduce the share of revenue it distributes to Microsoft under the current arrangement."
This internal shift forms part of a broader restructuring strategy aimed at enhancing OpenAI’s long-term financial autonomy and operational independence, especially as it inches closer to public listing consideration.
"Microsoft’s influence in OpenAI’s development has grown significantly since 2019. In January, it amended parts of its deal with OpenAI after announcing a joint venture with Oracle and SoftBank Group to construct up to $500 billion worth of new AI data centres in the US."
This massive investment signals Microsoft’s intent to dominate the global generative AI infrastructure market, further deepening its integration into OpenAI’s long-term ecosystem.
Despite the high stakes, both OpenAI and Microsoft have declined to comment on the ongoing negotiations or their possible outcomes as of now.
As OpenAI gears up for a potential IPO, its ongoing renegotiations with Microsoft reflect a strategic shift aimed at achieving greater financial independence and operational flexibility. With Microsoft having invested over $13 billion since 2019, the current discussions are crucial in redefining ownership terms, future access to OpenAI’s AI models, and the long-term direction of their partnership.
Microsoft appears open to reducing its equity stake in return for continued access to future technologies, highlighting its evolving role from equity holder to long-term technology collaborator. OpenAI, meanwhile, is also looking to restructure revenue-sharing agreements to better align with its ambitions for self-reliance and public market appeal.
The outcome of these talks could set the tone for how major AI companies balance innovation, funding, and independence. As generative AI reshapes industries, the final structure of this alliance may become a key blueprint for future AI partnerships and investments across the tech ecosystem.