• bitcoinBitcoin (BTC) $ 42,977.00 0.18%
  • ethereumEthereum (ETH) $ 2,365.53 1.12%
  • tetherTether (USDT) $ 1.00 0.2%
  • bnbBNB (BNB) $ 302.66 0.19%
  • solanaSolana (SOL) $ 95.44 1.28%
  • xrpXRP (XRP) $ 0.501444 0.1%
  • usd-coinUSDC (USDC) $ 0.996294 0.34%
  • staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
  • cardanoCardano (ADA) $ 0.481226 2.68%
  • avalanche-2Avalanche (AVAX) $ 34.37 1.19%
  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
    ethereumEthereum (ETH) $ 2,365.53 1.12%
    tetherTether (USDT) $ 1.00 0.2%
    bnbBNB (BNB) $ 302.66 0.19%
    solanaSolana (SOL) $ 95.44 1.28%
    xrpXRP (XRP) $ 0.501444 0.1%
    usd-coinUSDC (USDC) $ 0.996294 0.34%
    staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
    cardanoCardano (ADA) $ 0.481226 2.68%
    avalanche-2Avalanche (AVAX) $ 34.37 1.19%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 5.1 Gwei
 

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Microsoft and OpenAI

Microsoft and OpenAI renegotiate deal amid restructuring and profit model shift

Tariq Al-Mansouri

Microsoft and OpenAI are back at the negotiation table as their landmark AI partnership reaches a turning point.

The two companies are discussing a revision of their investment agreement, originally struck in 2019. Microsoft has poured over $13 billion into OpenAI, becoming its biggest financial backer and securing access to cutting-edge AI models. However, the current deal expires in 2030, and OpenAI’s shift in corporate structure has prompted a reassessment.

As part of the new terms, Microsoft may reduce its equity stake in OpenAI in exchange for continued long-term access to AI products. This reflects Microsoft’s interest in securing its position without necessarily holding direct control. For OpenAI, this is part of a broader strategic pivot.

OpenAI transitions to public benefit corporation

The most recent twist came on May 5, when OpenAI confirmed it was ditching plans for a full for-profit conversion. Instead, it will become a public benefit corporation, still aiming for profitability but under a structure accountable to social goals. A non-profit will remain in control.

This shift comes after heavy backlash, especially from Elon Musk. Musk, who co-founded OpenAI in 2015, criticized its deviation from original open-source goals. He’s accused the company of betraying its mission, calling it “super closed source AI for maximum profit.”

In November 2024, Musk legally challenged the restructuring plan. By February 2025, a Musk-led investor group even launched a $97.4 billion takeover bid for OpenAI, which CEO Sam Altman firmly rejected.

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Microsoft and OpenAI realign strategy for the future

Microsoft and OpenAI continue to navigate a complex relationship. Their collaboration is vital for both sides. Microsoft relies on OpenAI’s AI breakthroughs for its Azure cloud offerings and Copilot integrations in products like Office. OpenAI, in turn, gets compute resources, capital, and enterprise distribution from Microsoft.

The new deal under negotiation could determine how AI technologies are accessed and distributed for the next decade. By opting for a public benefit model, OpenAI is walking a line between mission and market, aiming to serve humanity while still attracting major commercial partners.

Microsoft and OpenAI now face the challenge of aligning on long-term objectives that serve both innovation and ethical standards. Their decisions may set the tone for how tech giants and AI firms collaborate in the coming years.

Can Microsoft and OpenAI balance ethics with profits?

There is pressure to prove that large-scale AI development can be both profitable and socially responsible. Public scrutiny continues to grow, especially as global governments race to regulate artificial intelligence.

Microsoft and OpenAI are pioneers, but their path forward must reflect transparency and public trust — or risk losing support from both users and regulators. The future of AI collaboration may hinge on how these two industry titans handle this delicate pivot.

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Why are Microsoft and OpenAI renegotiating their deal?

Microsoft and OpenAI are renegotiating to ensure continued access to AI models and products beyond the current agreement, which ends in 2030. OpenAI’s shift to a public benefit corporation means rethinking how equity, control, and product access will work in the future. Microsoft may reduce its stake in exchange for long-term AI usage rights. The renegotiation reflects both companies’ evolving strategies and the rapidly shifting AI landscape.

What is OpenAI’s new corporate structure?

OpenAI is transitioning to a public benefit corporation (PBC). This hybrid model allows the company to pursue profits while also having a legal commitment to public good. It maintains oversight by a non-profit, aligning with the organization’s original mission to develop safe and ethical AI. This shift replaces previous plans to become a fully for-profit entity, a proposal that had sparked criticism from co-founders and early supporters.

Why did Elon Musk criticize OpenAI?

Elon Musk co-founded OpenAI with the vision of open-source AI for the public good. He’s publicly opposed the company’s turn toward closed-source models and profit-driven goals. Musk’s criticism peaked in 2024 with legal actions, followed by a $97.4 billion buyout attempt in 2025. His main concern is that OpenAI has strayed from its foundational mission, prioritizing revenue over transparency and accessibility.

How will the Microsoft and OpenAI partnership affect the future of AI?

This partnership is one of the most influential in AI today. Microsoft’s infrastructure and funding empower OpenAI to push AI boundaries, while OpenAI’s innovations fuel Microsoft’s products. Their renegotiated deal could set a precedent for future collaborations between tech giants and AI developers, influencing access, ethical practices, and global policy in artificial intelligence development.

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