CosmicTaco

Microsoft and OpenAI's High-Stakes Negotiation Drama

CosmicTaco · 2025-05-12T11:57:42.355104+05:30

- OpenAI is in 'tough negotiation' talks with Microsoft, its major investor, as per the Financial Times. - The AI startup plans to restructure as a for-profit public benefit corporation, with its nonprofit board retaining control. - Microsoft, having invested $13 billion in OpenAI, is crucial for approving this restructuring. - Core negotiation issue: Microsoft's equity stake in the new for-profit entity versus access to future OpenAI tech. - Talks are further complicated by the growing competitive dynamics between the two companies. Source: [TechCrunch](https://techcrunch.com/2025/05/11/microsoft-and-openai-may-be-renegotiating-their-partnership/)

OpenAI is in 'tough negotiation' talks with Microsoft, its major investor, as per the Financial Times.
The AI startup plans to restructure as a for-profit public benefit corporation, with its nonprofit board retaining control.
Microsoft, having invested $13 billion in OpenAI, is crucial for approving this restructuring.
Core negotiation issue: Microsoft's equity stake in the new for-profit entity versus access to future OpenAI tech.
Talks are further complicated by the growing competitive dynamics between the two companies.

Source: TechCrunch