OpenAI is currently in “a tough negotiation” with its biggest investor and partner, Microsoft, according to the Financial Times.
The AI startup recently announced a major change to its corporate restructuring plans — while it still aims to convert its business arm into a for-profit public benefit corporation, its nonprofit board will still be in control.
The FT says it spoke to multiple sources who describe Microsoft, which has invested $13 billion in OpenAI to date, as a key holdout needed to approve the restructuring.
While the crux of the negotiation is how much equity Microsoft will receive in the new for-profit entity, the companies are also reportedly renegotiating their broader contract, with Microsoft offering to give up some of its equity in exchange for access to OpenAI technology developed after the current 2030 cutoff.
Sources also told the FT that the relationship between the two companies has become more competitive as OpenAI’s enterprise business has grown and as it pursues its wildly ambitious Stargate infrastructure project.