OpenAI is reportedly engaged in tense discussions with Microsoft, one of its largest investors and strategic partners, over its corporate restructuring plans. Despite moving forward with its transition to a for-profit public benefit corporation, OpenAI’s nonprofit board will retain ultimate control—a decision that requires approval from key stakeholders, including Microsoft.
According to the Financial Times, Microsoft—which has poured $13 billion into OpenAI—remains a critical holdout in finalizing the deal. At the heart of the negotiations is Microsoft’s potential equity stake in the new for-profit entity. However, the talks extend beyond ownership structure, as the two companies are also reworking their broader partnership. Microsoft has reportedly proposed relinquishing some of its equity in exchange for extended access to OpenAI’s cutting-edge technology beyond their current 2030 agreement.
The discussions are further complicated by the evolving dynamics between the two tech giants. As OpenAI expands its enterprise offerings and advances its ambitious Stargate AI infrastructure project, its relationship with Microsoft has grown increasingly competitive, adding another layer of complexity to the negotiations.
