The news: OpenAI and Microsoft are reworking the terms of their multibillion-dollar partnership, according to a report from the Financial Times.
Background: OpenAI announced last week that it is moving forward with a restructuring plan to create a for-profit public benefit corporation, controlled by its nonprofit parent. OpenAI needs sign-off from Microsoft — which has invested more than $13 billion in the ChatGPT maker since 2019 — to proceed with the plan.
What’s new: The Financial Times reported that Microsoft could take a smaller equity stake in the new entity in exchange for extended access to OpenAI’s technology beyond the previously agreed upon 2030 cutoff.
- Microsoft provides computing capacity for OpenAI’s services — and uses OpenAI technology in its own products, including Microsoft Copilot.
- The Information reported last week that OpenAI plans to reduce the percentage of revenue it shares with Microsoft as part of the restructuring.
- Also on the table: The restructuring could enable a future OpenAI IPO, according to the Financial Times.
Previously: Microsoft and OpenAI tweak the terms of their cloud deal, enabling $500B Stargate AI project
