13-May-2025 :

OpenAI and Microsoft are reportedly in advanced discussions to restructure their partnership. OpenAI is seeking to reduce Microsoft’s revenue share from 20% to 10% by 2030 as part of a broader plan to convert its business arm into a public benefit corporation (PBC).
Microsoft, which has invested over $13 billion in OpenAI, remains a key holdout in the proposed PBC transition. The relationship has also reportedly cooled, with OpenAI pursuing new enterprise partnerships and Microsoft concerned about overlapping customer bases and long-term access to core IP.
Tensions include control over OpenAI’s intellectual property post-2030, when their current contract ends. Microsoft is seeking assurances to maintain access to OpenAI’s technologies beyond that point.
Analysts view this renegotiation as a pivotal moment for both companies, especially with OpenAI preparing for new funding rounds and potentially a future IPO.