- Microsoft and OpenAI are discussing changes to their investment agreement as the current deal is set to expire after 2030.
- OpenAI is considering a corporate restructure to focus on profit, facing strong opposition from co-founder Elon Musk and some early investors.
- OpenAI has announced it will become a public benefit corporation instead of shifting to a fully for-profit model.
Microsoft and Artificial Intelligence company OpenAI are in talks to renegotiate their investment partnership, according to a report by the Financial Times. The two companies are seeking new terms that would continue Microsoft’s access to OpenAI’s technology after parts of the original agreement reach expiration in 2030.
Since 2019, Microsoft has invested over $13 billion in OpenAI to support the development of advanced AI models. The Financial Times reports that Microsoft may reduce its equity in OpenAI in order to maintain access to the firm’s AI products and models.
OpenAI has initiated a restructuring process to pivot toward profit-driven operations. However, these efforts have met with significant resistance from some co-founders, including Elon Musk. As noted in a legal filing from November 2024, Musk has publicly questioned the legality of the shift toward a for-profit model.
The origins of OpenAI trace back to 2015, when it was established as a nonprofit entity by Musk, Sam Altman, and Ilya Sutskever. In 2024, the company began to debate a transition into a for-profit corporation, but faced pushback from major stakeholders. Musk has criticized the move away from open-source development, saying at a public event, “OpenAI was actually started and was meant to be open source. I named it ‘OpenAI’ after open source, now it is, in fact, closed source. It should be renamed super closed source AI for maximum profit AI” (source).
In February 2025, a group led by Musk made a $97.4 billion bid to acquire OpenAI, but this offer was rejected by OpenAI’s CEO Sam Altman. On May 5, OpenAI announced a new plan to abandon its move to become a purely for-profit business. Instead, it will transition to a public benefit corporation, a legal structure that seeks both profit and social good and will remain controlled by a non-profit board (announcement).
The evolving relationship between Microsoft and OpenAI remains critical for the startup’s future as advanced AI technologies continue to be a primary focus for both industry leaders and global policymakers.
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