Microsoft Said to Be Prepared to Abandon High-Stakes Talks with OpenAI

Microsoft's investments into OpenAI has been a key factor in positioning it as a leading player in AI.

By Reuters | Updated: 19 June 2025 14:36 IST

Photo Credit: Reuters

OpenAI's transition into a public-benefit corporation may make it easier to raise capital

Highlights

Microsoft needs to approve OpenAI's decisions as a major backer
OpenAI executives feel Microsoft is anticompetitive
Microsoft has considered pausing discussions with ChatGPT

Microsoft is prepared to abandon its high-stakes negotiations with OpenAI over the future of its alliance, the Financial Times reported on Wednesday.

The tech giant has considered pausing discussions with the ChatGPT maker if the two sides remain unable to agree on critical issues such as the size of Microsoft's future stake in OpenAI, the report said, citing people familiar with the matter.

The company plans to rely on its existing commercial contract to maintain access to OpenAI's technology until 2030, according to the FT report.

Next-Gen Xbox Will Run on AMD Chip, Not Be 'Locked to a Single Store'

Microsoft and OpenAI did not immediately respond to Reuters' requests for comment on the report.

OpenAI executives have considered accusing Microsoft of anticompetitive behavior in their deal, the Wall Street Journal reported on Monday, adding that both the companies are discussing revising the terms of Microsoft's investment, including the future equity stake it will hold in the AI startup.

"Talks are ongoing and we are optimistic we will continue to build together for years to come," the companies said in a statement in response to the WSJ report.

OpenAI Executives Weighing Antitrust Accusation Against Microsoft: Report

Microsoft's multi-billion dollar investments into OpenAI has been a key factor in positioning it as a leading player in the artificial intelligence space.

OpenAI requires approval from Microsoft, its major backer, to complete its transition into a public-benefit corporation, which it believes will make it easier to raise more capital.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.