Microsoft preparing to withdraw from negotiations with OpenAI



Microsoft and OpenAI have been in talks for the past few weeks over the terms of a potential IPO, but no agreement has been reached, with the Financial Times reporting that Microsoft is preparing to pull out of the talks.

Microsoft prepared to walk away from high-stakes OpenAI talks

https://www.ft.com/content/072e90fe-1c8c-415c-8024-5996b1ebb3cb

Microsoft prepared to abandon high-stakes talks with OpenAI, FT reports | Reuters
https://www.reuters.com/business/microsoft-prepared-walk-away-high-stakes-talks-with-openai-ft-reports-2025-06-18/

Microsoft could ditch OpenAI's high-stake for-profit talks: “Holding out is Microsoft's nuclear option, and they are just making OpenAI sweat” | Windows Central
https://www.windowscentral.com/microsoft/microsoft-could-ditch-openais-high-stake-for-profit-talks-holding-out-is-microsofts-nuclear-option-and-they-are-just-making-openai-sweat

OpenAI is a non-profit organization with a for-profit subsidiary, and CEO Sam Altman and others had been planning to turn it into a for-profit company, but abandoned the plan in May 2025.

OpenAI decides to abandon commercialization and continue to be managed by a non-profit organization - GIGAZINE



Of this plan, the part that 'transfers the for-profit subsidiary to a public benefit company (PBC)' survives, and since PBC is capable of an IPO, discussions have been held with Microsoft regarding revising the content of the partnership in the event that OpenAI's PBC conducts an IPO in the future.

OpenAI in talks with Microsoft for future IPO - GIGAZINE



Microsoft has invested 2 trillion yen in OpenAI so far and would like to continue to have access to the next generation of technology developed by OpenAI. On the other hand, OpenAI has the intention of reducing Microsoft's influence, and opinions are at odds. It has been reported that OpenAI executives are also considering the option of 'asking regulators to examine whether Microsoft is violating antitrust laws.'

Is there a rift in the relationship between OpenAI and Microsoft? Dissatisfied OpenAI is preparing to file an antitrust suit - GIGAZINE



In response to reports that relations between the two companies were deteriorating, the companies issued a joint statement saying, 'We have a long-standing and productive partnership that has brought great AI tools to everyone. Our discussions continue and we are optimistic that we will be able to work together for many years to come.'

However, the talks have not gone well, and the Financial Times reports, citing sources, that Microsoft is prepared to walk away from the talks if it cannot reach an agreement with OpenAI.

Microsoft seems reluctant to give up access to OpenAI's technology or a share of the revenue it will generate, and is prepared to accept the current contract, which runs through 2030.

For OpenAI's commercial division to complete the transition to PBC, approval from its major investor, Microsoft, is required. And OpenAI is being forced to make a difficult decision, as it will lose hundreds of billions of yen in investments from SoftBank and others if it does not transition to PBC by 2025.

in Note, Posted by logc_nt