"Microsoft and OpenAI have signed a preliminary agreement that will enable the AI developer to transform itself into a commercial enterprise. This marks a new step in the intensive collaboration between the two partners. The deal is not yet final, and details about the commercial agreements are lacking, according to Reuters. However, both companies emphasize that they are working on a binding agreement."
"Microsoft invested $1 billion in the company in 2019 and added another $10 billion in early 2023. Until now, the software giant had the exclusive right to sell OpenAI's models and tools through the Azure platform and had preferential access to the technology. This exclusivity has recently been partially relinquished, allowing OpenAI to build its own infrastructure. This includes the Stargate data center project, for which the company has signed contracts worth hundreds of billions of dollars with Oracle and Google, among others."
Microsoft and OpenAI signed a preliminary agreement enabling OpenAI to become a commercial enterprise. The deal remains unfinished and commercial details are incomplete. OpenAI plans the restructuring to raise capital under traditional governance and prepare for a possible IPO. Microsoft invested $1 billion in 2019 and $10 billion in 2023 and previously held exclusive rights to sell OpenAI models via Azure. OpenAI has partially relinquished that exclusivity to build its own infrastructure, including the Stargate data center project with contracts involving Oracle and Google. Rapid revenue growth requires broader business structure, multi-cloud collaboration, and continued capacity to meet AI demand. OpenAI's non-profit arm would still receive substantial funding exceeding $100 billion.
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