Microsoft is reportedly in advanced negotiations to revise its agreement with OpenAI, aiming to maintain access to the startup’s cutting-edge AI technology even if OpenAI achieves artificial general intelligence (AGI), according to Bloomberg News, which cited sources familiar with the matter.
Under the current contract, Microsoft could lose certain rights to OpenAI’s most advanced tools once AGI is declared. The two companies are now working on updated terms that would allow Microsoft continued use of OpenAI’s latest models and innovations regardless of that milestone.
Talks have been ongoing for months and are progressing, with a potential agreement expected within weeks. Both Microsoft and OpenAI declined to comment when contacted by Reuters.
The discussions also relate to OpenAI’s shift toward becoming a public-benefit corporation, a move that requires Microsoft’s approval. Negotiations have included a review of Microsoft’s future equity stake in the AI firm. Reports from The Information last month highlighted tensions between the two companies over the AGI clause.
Meanwhile, OpenAI is also facing legal action from co-founder Elon Musk, who accuses the company of abandoning its original nonprofit mission in favour of commercial interests.
The timing is notable, as Microsoft is set to announce its earnings for the June quarter on Wednesday. Its partnership with OpenAI remains a major focus, especially as OpenAI seeks additional cloud resources from rivals such as Google, Oracle, and CoreWeave.
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