June 20, 2025 – Microsoft is reportedly on the verge of walking away from critical negotiations over its future partnership with OpenAI, as sources familiar with the matter revealed today. The tech giant could halt further discussions if the two companies fail to resolve key disagreements, particularly over Microsoft’s future equity stake in OpenAI, according to the Financial Times. Despite the impasse, Microsoft intends to continue leveraging OpenAI’s technological services under existing commercial agreements until 2030.
Earlier this week, the Wall Street Journal reported that OpenAI executives had contemplated filing allegations of unfair competition against Microsoft related to their ongoing dealings. Both sides are currently renegotiating investment terms, including potential adjustments to Microsoft’s future ownership share in OpenAI, sources said.
In a joint statement, Microsoft and OpenAI emphasized that “discussions remain ongoing, and we remain optimistic about continuing our partnership in the future.”
Microsoft’s substantial financial backing of OpenAI has been pivotal in cementing its position as a leader in the AI sector. As OpenAI advances toward adopting a public-benefit corporate structure, it requires approval from Microsoft—its major investor—believing the move will bolster its appeal to additional capital sources.
