Microsoft prepared to abandon high stakes talks with OpenAI, FT reports

A Microsoft sign and logo are pictured at the company's headquarters (AP Photo/Jason Redmond, File)

Microsoft is prepared to abandon its high-stakes negotiations with OpenAI over the future of its alliance, the Financial Times reported on Wednesday.

The tech giant has considered pausing discussions with the ChatGPT maker if the two sides remain unable to agree on critical issues such as the size of Microsoft’s future stake in OpenAI, the report said, citing people familiar with the matter.

The company plans to rely on its existing commercial contract to maintain access to OpenAI’s technology until 2030, according to the FT report.

Microsoft and OpenAI did not immediately respond to Reuters’ requests for comment on the report.

OpenAI executives have considered accusing Microsoft of anticompetitive behavior in their deal, the Wall Street Journal reported on Monday, adding that both the companies are discussing revising the terms of Microsoft’s investment, including the future equity stake it will hold in the AI startup.

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

Microsoft’s multi-billion dollar investments into OpenAI has been a key factor in positioning it as a leading player in the artificial intelligence space.

OpenAI requires approval from Microsoft, its major backer, to complete its transition into a public-benefit corporation, which it believes will make it easier to raise more capital.

(Reporting by Harshita Mary Varghese in Bengaluru and Juby Babu in Mexico City; Editing by Maju Samuel)