OpenAI may lose billions and the reason may once again be its ties with Microsoft

OpenAI’s planned corporate restructuring and multibillion-dollar funding round are likely to be delayed, and the reason for it may be its ties with Microsoft. This may happen as the Sam Altman-led AI startup, which has developed the popular chatbot ChatGPT, remains locked in complex negotiations with the tech giant that is its primary backer. The two companies are working to renegotiate their existing commercial contract, which is set to expire in 2030. A report by The Financial Times cited sources to claim that a failure to reach an agreement with Microsoft by the end of the year could jeopardise OpenAI’s plans to receive $10 billion investment from SoftBank. The ongoing talks are reportedly complicating OpenAI’s efforts to raise more capital and move toward a future initial public offering (IPO). The restructuring would also allow the AI startup’s investors to hold equity in the business.