OpenAI and Microsoft in talks to restructure billion-dollar partnership
Negotiations are underway betweenOpenAI and Microsoft to restructure their multi-billion dollar partnership. These talks are intended to allow OpenAI to eventually go public while ensuring that Microsoft retains access to its advanced artificial intelligence models.
A major point of contention is determining what interest Microsoft will have in OpenAI’s newly formed for-profit entity. This comes after Microsoft’s substantial investment of more than $13 billion in OpenAI.
Reports indicate that Microsoft is willing to relinquish some of its existing shares in exchange for continued access to technologies developed after 2030, when the current contract expires.
The original agreement, signed in 2019 with an initial $1 billion investment from Microsoft, describes intellectual property rights, product rights and revenue sharing until 2030. Both companies are working to revise those terms, according to sources familiar with the talks.
OpenAI has informed investors that it plans to share a smaller portion of its revenue with Microsoft as part of this restructuring process. This shift may be offset by Microsoft’s willingness to exchange some equity for expanded access to OpenAI’s future technology developments.
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