Open AI is negotiating with Microsoft for fresh funds and future IPO, reports FT:

The Financial Times reported on (11th of May), OpenAI and Microsoft are rewriting the terms of their multibillion-dollar partnership with a negotiation designed to allow the ChatGPT maker to launch a future IPO securing the software giant’s access to cutting-edge AI model developments.

A critical issue is how much equity in OpenAI’s new profit business Microsoft will receive in exchange for the more than 13 billion that has been invested in the company to date, the report stated.

It said Microsoft is prepared to let go of some of its equity stake in return for access to new technology developed beyond the 2030 cut-off.

According to the report, they are revising the terms of a wider contract, first drafted when Microsoft initially invested 1 billion in OpenAI in 2019.

Microsoft decline to comment to the report. There was no immediate response from OpenAI when Reuters requested it for comment.
OpenAI is offering a smaller fraction of revenue to its largest investor, according to the information reported last week. 

In January, Microsoft changed some of the terms of its deal with OpenAI after partnership with Oracle and Japan’s SoftBank Group to form up to 500 billion of new AI data centers in the United States.

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