OpenAI, Microsoft negotiate for fresh funding, potential IPO

The tech giants, OpenAI and Microsoft partnership that began in 2019 is under some renegotiation

OpenAI, Microsoft negotiate for fresh funding, potential IPO
OpenAI, Microsoft negotiate for fresh funding, potential IPO

OpenAI has been engaged in fruitful discussion with Microsoft to renegotiate their existing deal.

According to Financial Times report, the aim for the negotiations is to make the tech-firm profitable and prepare it for a potential Initial Public Offering (IPO) in the near future.

The key part of these negotiations is to decide how much equity Microsoft will hold in the revamped OpenAI.

What is Initial Public Offering (IPO)?

IPO is when a company sells shares to the public for the first time, allowing potential consumers to invest in it.

Microsoft and OpenAI contract over the years

Microsoft is OpenAI's biggest financial backer - while simultaneously being a crucial part in OpenAI's restructuring efforts - as it has invested over $13 billion into the company over the years.

The first deal between the two companies was signed in 2019, which expires in 2030.

Last week, OpenAI decided to go forward with its non-profit status, while still striving to make profit as it focused on social benefits.

This corporate transformation would allow OpenAI to offer equity shares to investors, which is a major demand from investors.

As per the current contract, Microsoft has access to OpenAI's technology and new models along with a share in the revenue of product sales till 2030.

Read more : Sci-Tech
Nothing Phone 3 launches with 5,150mAh battery: Check specs, price
Nothing Phone 3 launches with 5,150mAh battery: Check specs, price
Nothing phone 3 includes 12/16GB RAM and 256/512GB storage, providing an ample amount of storage for media files
Mark Zuckerberg reveals launch of 'Meta Superintelligence Labs' groups
Mark Zuckerberg reveals launch of 'Meta Superintelligence Labs' groups
Former CEO Alexandr Wang of Scale AI will head up the 'Meta Superintelligence Labs' as the company’s chief AI officer
Instagram now allows users to share Spotify songs with sound to Stories
Instagram now allows users to share Spotify songs with sound to Stories
Instagram has also improved visual storytelling by rolling out the latest font to Stories and Reels
Apple plans to use OpenAI, Anthropic for Siri AI upgrade: Report
Apple plans to use OpenAI, Anthropic for Siri AI upgrade: Report
Apple has reportedly asked these companies to train their models to operate on the company’s private servers
WhatsApp to let users switch between multiple accounts on one device
WhatsApp to let users switch between multiple accounts on one device
WhatsApp is offering two options for users to add a new account without the need for extra apps or devices
Spotify redesigns Discover Weekly playlist for the first time in a decade
Spotify redesigns Discover Weekly playlist for the first time in a decade
Spotify has announced a major update to its Discover Weekly playlist that provides listening recommendations to users
Humanoid robots struggle to play 3v3 football in China: Watch
Humanoid robots struggle to play 3v3 football in China: Watch
Humanoid robots compete in ROBO League in China ahead of World Humanoid Robot Games
Trendy tech gadgets everyone is talking about in 2025
Trendy tech gadgets everyone is talking about in 2025
Here is a list of few cutting-edge and most useful gadgets for 2025
OpenAI breaks silence on Meta luring top talent as competition toughens
OpenAI breaks silence on Meta luring top talent as competition toughens
Meta has been aggressively trying to hire top researchers from OpenAI to build its "superintelligence" AI team
Samsung to unveil Tri-Fold handset with Galaxy Z Fold 7, Z Flip 7: Report
Samsung to unveil Tri-Fold handset with Galaxy Z Fold 7, Z Flip 7: Report
Samsung tri-fold will be unveiled alongside Galaxy Z Fold 7, Galaxy Z Flip 7 at its Galaxy Unpacked event on July 9
WhatsApp adds document scanning feature on Android for limited users
WhatsApp adds document scanning feature on Android for limited users
With this update, WhatsApp allows users to convert and share documents in PDF format effortlessly
Gmail tests ‘Mark as Read’ feature on Android
Gmail tests ‘Mark as Read’ feature on Android
Gmail's latest feature would allow Android users to mark emails without requiring them to open the app