OpenAI in Negotiations with Microsoft Over Corporate Restructuring
According to the Financial Times, OpenAI is currently in “a tough negotiation” with Microsoft, one of its biggest investors and partners. The AI startup recently announced a major change to its corporate restructuring plans, with the aim of converting its business arm into a for-profit public benefit corporation while maintaining control under its nonprofit board.
The Financial Times spoke to multiple sources who revealed that Microsoft, which has invested $13 billion in OpenAI, is a key player in the negotiations needed to approve the restructuring. The main point of contention is how much equity Microsoft will receive in the new for-profit entity. Additionally, the companies are renegotiating their broader contract, with Microsoft considering giving up some equity in exchange for access to OpenAI technology developed beyond the current 2030 cutoff.
Sources also mentioned that the negotiations are complicated by the competitive relationship between the two companies. OpenAI’s enterprise business has been growing, and it is actively working on its ambitious Stargate infrastructure project.
