Microsoft, OpenAI negotiate multibillion-dollar AI partnership terms

OpenAI and Microsoft are renegotiating the terms of their multibillion-dollar partnership to enable OpenAI to launch a future IPO while ensuring Microsoft retains access to advanced AI technology. Central to the negotiations is the equity stake Microsoft holds in OpenAI's new for-profit entity, with Microsoft reportedly willing to reduce its ownership in exchange for continued access to technology developed after 2030. The two companies are also revisiting their original 2019 agreement, which involved a $1 billion investment from Microsoft for product and model access. OpenAI aims to restructure its business arm into a public benefit corporation, a model that allows it to raise capital while maintaining commitments to societal benefit, a structure also adopted by competitors like Anthropic and xAI. Despite the strategic reshuffling, Microsoft continues to integrate OpenAI's technology into its software and remains a key infrastructure provider. These developments highlight the evolving dynamics between the two firms as OpenAI pursues broader ambitions amid growing industry and regulatory attention on AI.