OpenAI in Talks with Microsoft for New Funding, Preparing for IPO
OpenAI & Microsoft renegotiate $13B deal amid IPO plans. Will Microsoft sacrifice equity for AI access post-2030? Key tech partnership at stake.
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OpenAI and Microsoft Are on the Verge of a Fallout!
Faced with OpenAI’s ambition to go public, Microsoft is willing to make sacrifices to keep its $13 billion investment from going down the drain.
OpenAI and Microsoft are renegotiating the terms of their multi-billion-dollar partnership.
Yes, Microsoft has finally conceded: “I can allow OpenAI to pursue an initial public offering (IPO) in the future, as long as I can continue to access OpenAI’s most advanced AI models.”
Microsoft has invested $13 billion but may give up some equity in exchange for access to AI technology after 2030.
The two parties are revising the original contract from 2019, when Microsoft invested $1 billion.
OpenAI has also informed other investors that it will reduce the profit-sharing ratio with its largest backer in the future.
In January, Microsoft already amended some terms and partnered with Oracle and SoftBank to build a $500 billion AI data center.
In fact, OpenAI itself is in a precarious position.
Industry insiders say that if OpenAI fails to successfully transform its commercial arm into a public benefit corporation, its financing and IPO plans will be significantly impacted, dealing a major blow.