Microsoft may end high-stakes OpenAI talks, and keep the current contract

Microsoft is reportedly ready to walk away from its ongoing negotiations with OpenAI, according to the Financial Times (via Reuters). Talks have stalled over key issues, including how much of a future stake Microsoft will hold in the company.

If the two sides can’t reach a deal, Microsoft may pause discussions and instead rely on its existing commercial agreement with OpenAI. That contract gives Microsoft access to OpenAI’s technology until 2030.

Microsoft–OpenAI alliance under pressure amid stalled talks

The partnership, which helped cement Microsoft’s lead in AI, has recently come under strain. Earlier this week, a report by the WSJ suggested that OpenAI executives have even considered accusing Microsoft of anticompetitive behavior.

Both companies are now discussing possible changes to the terms of Microsoft’s investment. That includes revisiting Microsoft’s future equity share in the ChatGPT maker. At the same time, OpenAI still needs Microsoft’s approval to transition into a public-benefit corporation—something it sees as critical to securing future funding.

In response to the WSJ report, both companies said, “Talks are ongoing and we are optimistic we will continue to build together for years to come.”

Microsoft’s multibillion-dollar investment has played a central role in giving it an edge in AI infrastructure and applications. But with negotiations stuck and tensions surfacing, the future of the alliance may depend on how much control each side is willing to give up—or keep.