Future of Microsoft OpenAI pact uncertain says report
Microsoft and OpenAI are reportedly renegotiating their partnership, with the Financial Times citing multiple sources indicating that the two companies are in “a tough negotiation.” The talks come as OpenAI announced a significant change to its corporate restructuring plans, with its nonprofit board remaining in control despite converting its business arm into a for-profit public benefit corporation.
Microsoft has invested $13 billion in OpenAI to date and is described as a key holdout needed to approve the restructuring. The negotiation centers on the amount of equity Microsoft will receive in the new for-profit entity. The companies are also renegotiating their broader contract, with Microsoft reportedly offering to give up some of its equity in exchange for access to OpenAI technology developed after 2030.
OpenAI’s new plan means less cash for Microsoft
The negotiations are complicated by the increasingly competitive relationship between Microsoft and OpenAI. OpenAI’s enterprise business has grown, and the company is pursuing its ambitious Stargate infrastructure project, contributing to the tension. The Financial Times reports that these factors are influencing the ongoing talks between the two companies.
Last week, Salesforce CEO Marc Benioff has criticized Microsoft’s past dealings with Slack, warning that the tech giant may use similar anticompetitive tactics against OpenAI in their partnership.