According to the Financial Times, the deal is designed to allow the ChatGPT manufacturer to launch an initial public offering in the future (IPO), while protecting access to the software giant's advanced artificial intelligence models.
Microsoft, OpenAI's largest sponsor, is one of the key reasons why the startup has not been able to restructure its $260 billion enterprise, in order to move OpenAI away from its original goal of being a nonprofit organization with the mission of developing AI to " bring benefits to humanity".
An important issue in the discussions is how much equity Microsoft will receive in the restructured corporation in exchange for the more than $13 billion it has invested in OpenAI so far.
According to sources shared with the Financial Times, Microsoft and OpenAI are revising the terms, which were first drafted in 2019, when Microsoft invested $1 billion in OpenAI.
The current contract is valid until 2030 and includes Microsoft's access to OpenAI's intellectual property such as models and products, as well as sharing of proceeds from product sales.
Last week, The Information reported that OpenAI told investors that it would share a smaller portion of its revenue with the largest sponsor when the company restructured.
Under the current agreement, OpenAI has agreed to share 20% of its revenue with Microsoft until 2030.
However, after the deal expired, OpenAI only wanted to share 10% of its revenue with its commercial partner Microsoft, and they emphasized that Microsoft wanted to access OpenAI's technology after 2030.
In January 2025, Microsoft changed some terms in the deal with OpenAI after joining a joint venture with Japan's Oracle and softBank Group to build new AI data centers worth up to $500 billion in the US.
