financetom
Business
financetom
/
Business
/
OpenAI negotiates with Microsoft for new funding and future IPO, FT reports
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
OpenAI negotiates with Microsoft for new funding and future IPO, FT reports
May 26, 2025 5:33 AM

May 11 (Reuters) - OpenAI and Microsoft ( MSFT ) are

rewriting the terms of their multibillion-dollar partnership in

a high-stakes 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 OpenAI's new

for-profit business Microsoft ( MSFT ) will receive in exchange for the

more than $13 billion it has invested in the company to date,

the report said. It said Microsoft ( MSFT ) 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 the terms of a wider contract, first

drafted when Microsoft ( MSFT ) initially invested $1 billion into OpenAI

in 2019, the report said.

OpenAI and Microsoft ( MSFT ) 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 ( MSFT ) changed some terms of a deal with

OpenAI after entering a joint venture with Oracle and

Japan's SoftBank Group to build up to $500 billion of

new artificial intelligence data centers in the United States.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Toyota considers investing in potential $42 billion buyout of key supplier
Toyota considers investing in potential $42 billion buyout of key supplier
May 25, 2025
By Maki Shiraki and Makiko Yamazaki TOKYO (Reuters) -Toyota Motor ( TM ) said it is exploring the possibility of investing in a potential buyout of key parts supplier Toyota Industries ( TYIDF ) - a buyout that reportedly could cost $42 billion. We are currently exploring various possibilities, including partial investment, the automaker said in a filing with the...
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Google agrees $36 million fine for anti-competitive deals with Australia telcos
Aug 17, 2025
SYDNEY, Aug 18 (Reuters) - Google agreed on Monday to pay a A$55 million ($35.8 million) fine in Australia after the consumer watchdog found it had hurt competition by paying the country's two largest telcos to pre-install its search application on Android phones, excluding rival search engines. The fine extends a bumpy period for the Alphabet-owned internet giant in Australia,...
Toyota considers investing in potential $42 billion buyout of key supplier
Toyota considers investing in potential $42 billion buyout of key supplier
May 25, 2025
By Maki Shiraki and Makiko Yamazaki TOKYO, April 27 (Reuters) - Toyota Motor ( TM ) said it is exploring the possibility of investing in a potential buyout of key parts supplier Toyota Industries ( TYIDF ) - a buyout that reportedly could cost $42 billion. We are currently exploring various possibilities, including partial investment, the automaker said in a...
Japan is a test case for Trump's tariff deals. But talks may be tortuous
Japan is a test case for Trump's tariff deals. But talks may be tortuous
May 25, 2025
TOKYO/WASHINGTON (Reuters) -When Tokyo's top trade negotiator met U.S. President Donald Trump for tariff talks at the White House earlier this month, he presented him with a gold-coloured piggy bank.     One detail, seemingly unnoticed by those in the room, is that the gift was made in China, the focal point for Trump's sweeping trade war that has engulfed Japan...
Copyright 2023-2026 - www.financetom.com All Rights Reserved