Microsoft and OpenAI are in crucial discussions regarding their partnership. The focus is on OpenAI's transition to a for-profit model, which requires Microsoft's approval.
Negotiations center on Microsoft's future equity stake, with proposals ranging from 20% to 49%. The current agreement grants Microsoft exclusive rights to sell OpenAI's models and a 20% revenue share.
If an agreement isn't reached, Microsoft will continue with the existing contract. Both companies express optimism about continuing their collaboration. Microsoft's stock (MSFT) is trading at $480.24 as of June 19, 2025.