OpenAI is reportedly in negotiations with Microsoft regarding new funding and a potential future IPO, according to the Financial Times. A key issue under discussion is the amount of equity Microsoft will receive in OpenAI’s new for-profit business in exchange for its over $13 billion investment so far. Microsoft is reportedly offering to reduce its equity stake in return for access to technology developed beyond a 2030 cutoff date. Additionally, the two parties are revising the terms of their broader contract, initially drafted when Microsoft first invested $1 billion in OpenAI in 2019. OpenAI has informed investors it plans to share less revenue with its largest backer as it restructures. Neither OpenAI nor Microsoft immediately responded to requests for comment.
— new from Reuters
