Report: OpenAI seeks to revise Microsoft deal to clear the way for IPO
After ditching its plan to demote its controlling nonprofit arm last week, OpenAI is busy haggling with partner Microsoft to make changes to its agreements as it looks toward a future IPO, according to reporting from the Financial Times.
A lot is riding on OpenAI completing its transition to a for-profit public benefit corporation.
The startup could lose out on billions of promised investments if it doesn’t pull off the conversion, resulting in big slices of equity for early investors like Microsoft, Nvidia, and SoftBank.
According to the report, Microsoft is willing to reduce its equity in exchange for longer-term access to OpenAI technologies. The current $14 billion deal only covers up until 2030.
Recent tensions between OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella have added urgency to the negotiations.
The startup could lose out on billions of promised investments if it doesn’t pull off the conversion, resulting in big slices of equity for early investors like Microsoft, Nvidia, and SoftBank.
According to the report, Microsoft is willing to reduce its equity in exchange for longer-term access to OpenAI technologies. The current $14 billion deal only covers up until 2030.
Recent tensions between OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella have added urgency to the negotiations.
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