Microsoft Prepares OpenAI Exit

Microsoft Prepares OpenAI Exit

18 June 2025

Microsoft is reportedly making contingency plans as OpenAI considers converting to a for-profit structure. Negotiations are ongoing regarding Microsoft's equity stake in the restructured OpenAI, with Microsoft seeking a larger share than OpenAI is willing to concede. Microsoft is willing to relinquish some equity for continued access to OpenAI's technology beyond 2030. OpenAI needs to complete the conversion by the end of the year to secure $20 billion in funding.

Microsoft has invested significantly in OpenAI, integrating its AI models into Azure and other software. The current agreement involves revenue sharing, granting Microsoft access to OpenAI's AI models. OpenAI's growing ambitions have led to increased competition with Microsoft, as it targets enterprise customers and partners. OpenAI is also considering measures to ensure greater autonomy, potentially leading to a regulatory review of its contract with Microsoft, alleging anti-competitive practices.

Despite the tensions, both companies express optimism about their continued partnership. However, the final structure and terms remain under negotiation, with Microsoft prepared to adjust its strategy if an agreement cannot be reached.

Source:ft.com

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Published on 18 June 2025
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Microsoft Prepares OpenAI Exit