Microsoft Threatens to Pull Plug on OpenAI Deal Over For-Profit Dispute
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Microsoft is reportedly considering stepping away from talks over OpenAI’s for-profit restructuring. The Financial Times broke the story yesterday, revealing that the company may freeze negotiations entirely.
Talks hit a wall after OpenAI pushed to rewrite its deal with Microsoft. At the core of the tension lies money and control, OpenAI wants to cut Microsoft’s revenue share in half by 2030. Microsoft, in response, has started “making OpenAI sweat,” according to sources close to the matter. One insider even described Microsoft’s silence as its “nuclear option.”
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If no new agreement lands, Microsoft will stick with the original contract until 2030. That deal still gives Microsoft early access to OpenAI’s latest models in exchange for compute power and financial backing. Internally, some Microsoft execs say they’re fine with the status quo, especially since the company profits from every ChatGPT interaction.
But OpenAI isn’t happy. CEO Sam Altman recently criticized Microsoft’s computing limitations, claiming the company could fall behind in the AI race. The partnership has grown increasingly tense as both sides wrestle over resources, revenue, and long-term power.
Microsoft hasn’t walked yet. People familiar with the situation claim the company still hopes to reach a deal. But if OpenAI keeps pushing to reduce Microsoft’s share, the software giant might decide it’s better to stay put and wait out the storm.
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