A $20 billion clock is ticking for OpenAI as Microsoft talks turn fractious

From Yahoo Finance: 2025-06-19 09:00:00

OpenAI is under pressure to restructure its business to secure a multibillion-dollar investment from SoftBank. Microsoft’s investment gives it equity in OpenAI’s for-profit operations and access to APIs until 2030, contributing to its $105 billion AI cloud services revenue in fiscal 2024. Negotiations with Microsoft have become contentious, potentially involving antitrust regulators. Microsoft may walk away from discussions entirely. OpenAI seeks to block Microsoft from accessing technology from its acquisition of Windsurf, and there are disagreements over equity in the restructured business. Microsoft has already changed parts of its agreement with OpenAI, including giving up exclusivity for Azure usage. OpenAI, originally a nonprofit, faces challenges converting to a for-profit entity due to legal requirements and lawsuits, including one filed by co-founder Elon Musk. Join Yahoo Finance’s Week in Tech newsletter for more updates on this evolving situation.



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