Microsoft (MSFT) and OpenAI are rewriting the terms of their partnership in a negotiation aimed at enabling the parent of the ChatGPT artificial intelligence chatbot to launch a future initial public offering, while protecting the technology giant's access to its AI models, the Financial Times reported.
The talks center on how much equity in the restructured group Microsoft will receive in exchange for the multibillion-dollar investment it has made in OpenAI so far, according to the report.
The companies are also reviewing the terms of a wider contract drafted previously that currently runs through 2030 and covers what access Microsoft has to OpenAI's intellectual property, as well as a revenue share from product sales, the FT reported, citing multiple people with knowledge of the negotiations.
Microsoft has offered to give up some of its interest in OpenAI's new for-profit business in exchange for accessing new technology developed beyond the 2030 cutoff, the FT quoted three people with direct knowledge of the discussions as saying.
Microsoft and OpenAI didn't immediately respond to MT Newswires' requests for comment.
Microsoft shares were up 2% in recent premarket activity Monday.
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