OpenAI's IPO Ambitions Hang In The Balance As Microsoft Negotiates Equity: Report

OpenAI is reportedly in high-stakes negotiations with Microsoft Corporation (NASDAQ:MSFT) to revise the terms of their multibillion-dollar partnership.

Talks also involve revising an existing contract, signed when Microsoft first invested $1 billion in 2019, that governs access to OpenAI's intellectual property and outlines a revenue-sharing arrangement.

See Also: Netflix Debuts OpenAI-Backed Search Engine That Lets You Discover Movies And TV Shows Based On Emotions, Not Just Titles

As per the report, Microsoft may be willing to relinquish some of its equity in exchange for extended access to OpenAI's future technologies beyond 2030, when the current agreement expires.

Why It's Important: Last week, it was reported that OpenAI plans to cut the revenue share it pays to Microsoft by at least half by 2030.

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Price Action: Per Benzinga Pro, Microsoft shares have risen 1.35% over the past five days.

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