Microsoft and OpenAI could be rethinking their Partnership

OpenAI and Microsoft are back at the negotiating table, working through tough conversations that could shift the balance of their long-standing partnership. At the heart of OpenAI’s plans is to restructure its business into a public benefit corporation, while still keeping its nonprofit board in charge.

Not everyone’s on board with how OpenAI is evolving. People like Elon Musk and some former team members have raised concerns that the company could be losing sight of why it started, to build AI that helps everyone, not just boost profits.

And then there’s Microsoft. They’ve invested over $13 billion into OpenAI since 2019, so it makes sense that they’d want a strong voice in what happens next.

One major sticking point is how much equity Microsoft will get in the newly formed entity. Word is, Microsoft might be open to giving up some of its stake if it means keeping access to OpenAI’s future breakthroughs beyond the current 2030 agreement.

But it’s not just about equity. Things have become more complex as OpenAI’s enterprise arm keeps growing. Its massive Stargate project, worth around $500 billion and backed by names like Oracle and SoftBank, is another sign the company is expanding fast and looking beyond Microsoft’s cloud. That growth has turned the once clear-cut partnership into more of a competitive relationship.

Even so, the two companies still rely on each other. Microsoft uses OpenAI’s tech across its products and provides key computing power in return. Meanwhile, state officials in California and Delaware are reviewing OpenAI’s corporate changes to ensure it still fits within its nonprofit purpose.

Whatever happens next could set the tone for how big AI companies work together or compete, moving forward.