Microsoft wants to sit out the contract with OpenAI until 2030

Microsoft and OpenAI have an existing cooperation agreement that is valid until 2030. However, OpenAI would like to change its own corporate structure. There is said to be a dispute over Microsoft's changed stake in OpenAI. Access to the knowledge and software of a start-up acquired by OpenAI is also said to be a matter for negotiation at present. Microsoft has reportedly planned to insist on the existing contract if a better result is not achieved. OpenAI, on the other hand, is said to want to use more drastic measures.

According to the Financial Times, Microsoft is prepared to break off negotiations with OpenAI over the multi-billion euro alliance if both sides are unable to agree on a new contract. The main question is probably the amount of the future investment. Microsoft has invested a total of around 13 billion US dollars in OpenAI – now the question is how many company shares they would receive in return in the event of a conversion. However, people familiar with the matter are also said to have told the FT that talks between the companies are taking place almost daily and that Microsoft believes the outcome will be positive.

Dependencies between OpenAI and Microsoft

The problem: OpenAI needs Microsoft's approval and a new contract to transform its structure into a profit-oriented company. Only as such can OpenAI attract further investors, such as the Japanese Softbank. Investors are usually interested in getting money back. This is only possible to a very limited extent for a non-profit company. Microsoft receives exclusive access to some of the company's developments in return for its billion-euro investments.

According to some reports, Microsoft is also reliant on these developments to keep up with the big tech AI race. On the other hand, Microsoft has already integrated xAI's AI model Grok and Meta's Llama into its Azure services.

The pressure seems to be very high at OpenAI. It is said that the AI company is planning to pillory Microsoft if the negotiations fail. They want to accuse Microsoft of anti-competitive behavior and make the contracts available to the US antitrust authorities. It is questionable whether they will want to take a look at these rumors alone.

Little support for OpenAI's plans

Elon Musk has already tried to prevent the restructuring of OpenAI in court – and has so far failed. He believes that Sam Altman and other founders of OpenAI misrepresented their intentions to defraud him of his participation in the company. OpenAI was founded to benefit humanity – as a charity, not to make a profit.

And Mark Zuckerberg has already publicly asked the relevant US authorities not to approve the conversion. He warns of “seismic effects” on Silicon Valley. It is nothing less than a “paradigm shift” for tech start-ups because it offers the incentive to initially start organizations as non-profits to raise millions in tax-free donations for research and development – only to switch to the for-profit model when the business model becomes profitable.

(emw)