OpenAI Talks Stall as Microsoft Weighs Future Investment Terms – FT

Microsoft could suspend negotiations with OpenAI after failing to agree on the size of its future equity stake, according to a Financial Times report published June 18, 2025. The tech giant plans to rely on its existing commercial agreement with OpenAI through 2030 if talks collapse.

The Core Disagreement 

The disagreement centers on how much of OpenAI Microsoft would own in future funding rounds. People familiar with the discussions told the Financial Times that Microsoft has considered pausing high-level talks with the ChatGPT creator after weeks of intense negotiations between Microsoft's investment team in Redmond and OpenAI executives in San Francisco.

Sources indicate Microsoft's board is concerned that overpaying for a larger stake could expose the company to heightened regulatory scrutiny and financial risks. OpenAI's leadership wants to keep enough capital flexibility for future fundraising. Microsoft executives believe they can continue using OpenAI's technology in their products under the current deal, which guarantees access until 2030.

Conflicting Reports and Official Statements

Adding to the tension, the Wall Street Journal reported separately that OpenAI's leadership has privately discussed accusing Microsoft of anticompetitive behavior during the talks.

In stark contrast to these reports of friction, the two companies issued a unified public front.

Talks are ongoing and we are optimistic we will continue to build together for years to come,

they said in a joint statement responding to the coverage.

Microsoft has committed billions to OpenAI since 2019 as part of its strategy to lead in artificial intelligence. The investment relationship faces a key test as OpenAI transitions to its unique “capped-profit” public-benefit corporation structure, a model designed to balance a social mission with the need to attract vast amounts of capital. OpenAI needs approval from Microsoft, its largest backer, to complete this change and secure future funding rounds.

The potential breakdown in negotiations would mark a significant shift in one of the tech industry's most important partnerships. Microsoft has integrated OpenAI's technology across its product lineup, while OpenAI relied on Microsoft's cloud infrastructure and capital to fuel its growth.

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