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Microsoft and OpenAI rework partnership amid IPO preparations
Microsoft and OpenAI are renegotiating their multibillion-dollar partnership to pave the way for OpenAI’s potential IPO while securing Microsoft’s long-term access to advanced AI technologies.
The system is also designed for personalization. It assesses a user's skill level and tailors its responses accordingly. The mode also retains a memory of past conversations, allowing for continuity and a more adaptive learning experience over time.
Microsoft and OpenAI are renegotiating the terms of their multibillion-dollar partnership, according to a report by the Financial Times. The discussions are aimed at enabling OpenAI to pursue a future initial public offering while ensuring Microsoft retains privileged access to the start-up’s most advanced technologies.
At the heart of the talks is a question of equity: how much of a stake Microsoft will hold in OpenAI’s for-profit business in return for its more than $13 billion in investments to date. Sources told the Financial Times that Microsoft is willing to reduce its equity share in exchange for guaranteed access to future AI innovations beyond a 2030 agreement horizon.
The negotiations come as both companies revisit the broader framework of their collaboration, which began with Microsoft’s initial $1 billion investment in 2019. The evolving terms reflect how rapidly the AI landscape, and OpenAI’s ambitions, have shifted since then.
The shift in dynamics follows Microsoft’s revised agreement with OpenAI in January, shortly after the tech giant entered a joint venture with Oracle and Japan’s SoftBank Group to develop up to $500 billion in AI-focused data centers across the United States.
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