OpenAI, the company behind ChatGPT, is currently in important discussions with Microsoft about a new funding agreement that could shape the future of both companies.
Back in 2019, Microsoft invested around $1 billion (£752.6 million) in OpenAI under a deal that gave Microsoft special access to OpenAI’s advanced AI models and solutions. That agreement is set to expire in 2030.
Since then, Microsoft has poured over $13 billion (£9.7 billion) into OpenAI, making it one of the largest investors in the AI research company. With OpenAI planning major changes—including a possible Initial Public Offering (IPO)—a new agreement must be reached that will decide how much ownership Microsoft will have in the newly restructured company.
As part of its restructuring, OpenAI is planning to become a Public Benefit Corporation (PBC). This move would allow OpenAI to maintain its mission-driven approach while opening doors to public investment.
In a message to employees, OpenAI CEO Sam Altman shared the company’s bold vision:
“We now see a way for AGI (Artificial General Intelligence) to directly empower everyone as the most capable tool in human history. We believe people will build amazing things that help each other and push society forward.”
Reports suggest that OpenAI wants to lower the share of revenue that Microsoft currently receives—from 20% to 10%, although exact details of the negotiations are still under wraps.
OpenAI confirmed in a recent statement:
“We continue to work closely with Microsoft, and look forward to finalising the details of this recapitalisation in the near future.”
This upcoming deal will not only redefine Microsoft’s stake in OpenAI but also prepare the company for a future as a publicly traded tech powerhouse.
