Reports suggest that OpenAI is currently engaged in "challenging negotiations" with its largest investor and partner, Microsoft.

The artificial intelligence startup recently revealed a significant development—its corporate restructuring plan. While the company still intends to transform its commercial division into a for-profit public benefit corporation, its non-profit board will remain in control.

Multiple insiders were interviewed, describing Microsoft (which has invested $13 billion in OpenAI so far) as a crucial supporter necessary for approving the restructuring.

At the heart of these negotiations is how much equity Microsoft will receive in the new for-profit entity. The two companies are also reportedly renegotiating broader contracts, with Microsoft proposing to give up some equity in exchange for continued access to OpenAI’s technology beyond the current 2030 cutoff date.

Sources indicate that these discussions have become more complex due to increasing competition between the two firms. This is driven by OpenAI's expanding enterprise operations and its pursuit of the highly ambitious Stargate infrastructure project.