Microsoft, OpenAI Discussions on Post-AGI Tech Access Continue

Published Date : 29/07/2025 

Microsoft and OpenAI are in advanced talks to ensure Microsoft retains access to OpenAI’s technology even after the company achieves artificial general intelligence (AGI). This deal could pave the way for OpenAI’s transformation into a for-profit corporation. 

Microsoft and OpenAI are reportedly in advanced talks on a deal that would give Microsoft continued access to OpenAI’s technology after the company achieves artificial general intelligence (AGI). Under the current agreement, Microsoft would lose access to any new technology from OpenAI when its board determines it has developed AGI, according to a Bloomberg report.

This provision has been a significant barrier to OpenAI’s efforts to transform itself into a for-profit corporation. A new agreement could help it move toward this goal. The companies could reach an agreement within weeks, although things could change as the deal has not been finalized, the report said, citing unnamed sources.

When contacted by PYMNTS, Microsoft declined to comment on the report. OpenAI did not immediately respond to PYMNTS’ request for comment. The companies have been renegotiating their relationship since OpenAI announced its plans to become a for-profit company, according to the report.

Microsoft, which has invested about $13.75 billion in OpenAI, has blocked the move due to disputes about the size of its stake in the company and its access to OpenAI’s technology. It was reported in September that OpenAI planned to restructure its core business into a for-profit benefit corporation that wouldn’t be controlled by its nonprofit board. This restructuring would make the company more attractive to investors, as it would operate more like a typical startup.

OpenAI was founded in 2015 as a nonprofit AI research organization and added a for-profit entity called OpenAI LP as a subsidiary of the nonprofit. It was reported in December that Microsoft and OpenAI had been in talks since October about how to restructure the AI firm. At that time, it was reported that the talks centered on Microsoft’s equity stake in the for-profit entity; whether Microsoft would continue to be OpenAI’s exclusive cloud provider; how long Microsoft would maintain its right to use OpenAI’s intellectual property in its products; and whether Microsoft would continue to take 20% of OpenAI’s revenue.

In May, it was reported that OpenAI’s planned restructuring could help it go public, although the timing of an initial public offering would depend on the market and the company’s readiness. For all PYMNTS AI coverage, subscribe to the daily AI Newsletter. 

Frequently Asked Questions (FAQS): 

Q: What is artificial general intelligence (AGI)?

A: Artificial general intelligence (AGI) refers to a type of artificial intelligence that can understand, learn, and apply knowledge in a way that is similar to human intelligence. It is considered a significant milestone in AI development.

Q: Why is Microsoft interested in continued access to OpenAI’s technology?

A: Microsoft has invested heavily in OpenAI and sees the potential for integrating advanced AI technologies into its products and services, which can enhance its competitive edge in the tech industry.

Q: What is the current structure of OpenAI?

A: OpenAI was initially founded as a nonprofit AI research organization in 2015. It later added a for-profit entity called OpenAI LP as a subsidiary. The company is now considering restructuring to become a for-profit benefit corporation.

Q: What are the main points of contention in the negotiations between Microsoft and OpenAI?

A: The main points of contention include the size of Microsoft’s stake in OpenAI, its access to OpenAI’s technology, whether Microsoft will continue to be OpenAI’s exclusive cloud provider, and the terms of revenue sharing.

Q: How could the restructuring of OpenAI benefit the company?

A: Restructuring OpenAI into a for-profit benefit corporation could make it more attractive to investors and help it raise additional funding, which could accelerate its research and development efforts. 

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