OpenAI negotiating with Microsoft for new funding, future IPO: FT

Core Insights - OpenAI and Microsoft are negotiating the terms of their multibillion-dollar partnership to facilitate OpenAI's future IPO while ensuring Microsoft's access to advanced AI models [1] - A significant point of discussion is the equity stake Microsoft will receive in OpenAI's new for-profit entity in return for its over $13 billion investment [1] - Microsoft is willing to relinquish some of its equity stake for access to new technology developed after the 2030 deadline [2] Contractual Revisions - The terms of a broader contract, originally established when Microsoft invested$1 billion in OpenAI in 2019, are being revised [3] - OpenAI has indicated to investors that it will share a smaller portion of revenue with Microsoft as it undergoes restructuring [3] Strategic Partnerships - In January, Microsoft altered some terms of its agreement with OpenAI following a joint venture with Oracle and Japan's SoftBank Group to develop up to $500 billion in new AI data centers in the U.S. [4] - OpenAI is positioning itself for a future IPO [5]