OpenAI Wants Microsoft to Accept 33% Stake in Business

OpenAI has told shareholders it wants Microsoft to accept a roughly 33% equity stake in a restructured version of its for-profit business, one of several concessions it wants from its biggest outside shareholder, The Information reported on Monday.

The startup is locked in negotiations with Microsoft over the terms of that restructuring and changes to its existing contract with the software giant, which can veto OpenAI’s plans. In exchange for the 33% stake, OpenAI wants Microsoft to relinquish its right to 49% of OpenAI’s future profits up to a certain cap, as well as 20% of OpenAI’s revenue and the right to use its intellectual property through 2030. The restructuring of the for-profit unit with traditional equity would allow OpenAI to go public.

At the same time, Microsoft is angling for its own concessions from OpenAI, including continued access to the startup’s IP after the current commercial deal between the companies ends in 2030.