OpenAI and Microsoft Rework Partnership Amid $57.9B Funding and IPO Talks
OpenAI and Microsoft are in the midst of high-level negotiations to reshape their multibillion-dollar partnership, with an eye on enabling OpenAI to go public while ensuring Microsoft retains access to its cutting-edge AI technology. Central to the talks is a possible adjustment to Microsoft’s equity stake in OpenAI’s for-profit arm, which was formed alongside its nonprofit division. Microsoft, having invested over $13 billion since 2019, may relinquish part of that stake in exchange for extended AI access past 2030.
This renegotiation revisits the foundational agreement formed in 2019, when Microsoft made a $1 billion investment in OpenAI. Since then, the collaboration has powered Azure’s AI capabilities and brought OpenAI’s models like ChatGPT into Microsoft’s product suite. The companies are now reviewing the framework of this long-standing alliance to better align with the current scale and complexity of AI operations.
OpenAI’s growth has been explosive, having raised nearly $58 billion across 11 rounds since its founding in 2015. Its most significant funding round, a $40 billion Series F in March 2025 led by SoftBank, signals strong investor confidence. The ongoing negotiations with Microsoft are seen as a strategic move that would grant OpenAI more autonomy and flexibility as it prepares for a potential initial public offering.
Adding another layer to the story, OpenAI reportedly plans to reduce the share of revenue allocated to Microsoft, reinforcing its intentions to gain more control over its financial structure. This shift hints at OpenAI’s ambitions to operate more independently and take greater ownership of its future business trajectory while still maintaining critical strategic ties.
These developments also follow Microsoft’s broader repositioning in the AI sector, including a joint venture with Oracle and SoftBank to build AI data centers across the U.S. worth up to $500 billion. As the AI landscape rapidly evolves, the outcome of these talks could reshape industry dynamics, redefine strategic alliances, and determine how major players balance innovation, profit, and global influence in artificial intelligence.
Source: Nairametrics