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OpenAI and Microsoft in talks to revise terms and renew partnership, FT reports

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OpenAI could be rewriting its Microsoft agreement

Open AI CEO Sam Altman speaks during a talk session with SoftBank Group CEO Masayoshi Son at an event titled "Transforming Business through AI" in Tokyo, Japan, on February 03, 2025. SoftBank and OpenAI announced that they have agreed a partnership to set up a joint venture for artificial intelligence services in Japan today.
(Image credit: Getty Images / Tomohiro Ohsumi / Stringer)
  • OpenAI is reportedly exploring going public, but the nonprofit will remain in charge
  • Microsoft's side of the deal could be affected with a change in structure
  • Sam Altman says OpenAI can't handle the world's hunger for AI

OpenAI and Microsoft are believed to be negotiating their partnership terms to enable OpenAI to potentially go public, while ensuring that Microsoft can continue accessing the AI startup's technology.

Reuters explained that the two companies could be in the midst of rewriting their terms, however Redmond's extensive involvement in the ChatGPT-maker's recent history could be adding further complexities to any potential IPO.

Details of the alleged deal could have considerable consequences for Microsoft, which currently has an agreement allowing it to access OpenAI's models until the end of the decade.

Exploring the future of their partnership

Being a private company, we have no real indication of how much OpenAI might be worth and how much it may wish to list for, however Microsoft's estimated $13.75 billion stake in the company is certainly a considerable sum.

It's been reported that OpenAI is reconsidering its transformation from a nonprofit to a fully commercial enterprise after pushback from employees, academics and competitors, including Elon Musk.

"OpenAI was founded as a nonprofit, and is today overseen and controlled by that nonprofit. Going forward, it will continue to be overseen and controlled by that nonprofit," OpenAI CEO Sam Altman said in a letter to staff.

"We currently cannot supply nearly as much AI as the world wants and we have to put usage limits on our systems and run them slowly," Altman explained.

The letter details how the for-profit LLC will transition to a Public Benefit Corporation (PBC), much like Anthropic and X.ai have done, however the nonprofit division will remain in control of the PBC, maintaining its position as a "big shareholder."

TechRadar Pro has asked Microsoft and OpenAI about the implications of a potential deal, but neither company replied to our email.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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