OpenAI Negotiates with Microsoft for New Funding 6mi43 Future IPO: Report

Microsoft invested an initial $1 billion (roughly Rs. 8,468 crore) in OpenAI six years ago. 3t5a57

By Gabriela Mello, Bloomberg News | Updated: 12 May 2025 13:05 IST

OpenAI Negotiates with Microsoft for New Funding, Future IPO: Report

Photo Credit: Bloomberg 2x1m1w

Microsoft is offering to give up some of its equity stake in OpenAI’s new for-profit business

Highlights

Microsoft offers to reduce equity stake in OpenAI
It wishes to access new AI models developed beyond 2030,
Last contract between Microsoft and OpenAI was drafted six years ago

ment

OpenAI and Microsoft are rewriting of their multibillion-dollar partnership in a negotiation designed to allow the ChatGPT maker to launch a future IPO, while protecting the software giant's access to cutting-edge AI models, the Financial Times reported on Sunday.

A critical issue is how much equity in Microsoft will receive in exchange for the more than $13 billion (roughly Rs. 1,10,089 crore) it has invested in the company to date, the report said. It said Microsoft is offering to give up some of its equity stake in exchange for access to new technology developed beyond the 2030 cutoff.

They are also revising of a wider contract, first drafted when Microsoft initially invested $1 billion (roughly Rs. 8,468 crore) into OpenAI in 2019, the report said.

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Microsoft declined to comment on the report. OpenAI did not immediately respond to Reuters' requests for comment.

OpenAI has told investors it will share a smaller fraction of revenue with its largest backer as it moves ahead with restructuring, The Information reported last week.

In January, Microsoft changed some of a deal with OpenAI after entering a t venture with Oracle and Japan's SoftBank Group to build up to $500 billion (roughly Rs. 42,31,440 crore) of new AI data centers in the US.

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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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