Microsoft and OpenAI may be renegotiating their partnership
techcrunch.comPublished: 5/11/2025
Summary
As OpenAI faces pressure from its biggest investor, Microsoft, over its restructuring plans, the company is in a tough negotiation with the tech giant to convert its AI business into a profitable nonprofit while retaining control of its nonprofit board. Microsoft, which has invested $13 billion in OpenAI, is demanding significant equity in the new entity as a key holdout in the talks. Meanwhile, the increasingly competitive relationship between the two companies complicates the negotiations, driven by OpenAI's rapid growth and ambitious Stargate project ambitions.