Microsoft is reportedly reconsidering the ongoing negotiations with OpenAI amid collaboration tensions.
According to the Financial Times, the discussions have intensified as ChatGPT manufacturer shifts from a non-profit to a for-profit model, aiming for increased funding opportunities.
At the center of the discussions is Microsoft’s massive investment, more than $13 billion, and the equity stake which would be received in return.
Several reports suggested that negotiations have ranged between 20% and 49%.
While Microsoft is eager to revise the terms that reflect its significant financial involvement, the American tech giant has signalled that it is willing to rely on the existing agreement that provides access to OpenAI’s technology through 2030.
Despite the escalated tensions, both companies have shown optimism.
Microsoft and OpenAI released a joint statement
Both companies have released a joint statement, which reads, “We have a long-term, productive partnership that has delivered amazing AI tools for everyone.”
“Talks are ongoing and we are optimistic we will continue to build together for years to come,” they added.
Under the 2019 agreement, Microsoft received exclusive rights to commercialise OpenAI’s models and a 20% revenue share of up to $92 billion.
Microsoft’s Azure distribution rights, first-refusal infrastructure provision, and early access to intellectual property are currently under scrutiny, particularly clauses regarding artificial general intelligence (AGI), which are now under reconsideration.
