Microsoft negotiations set to push OpenAI restructure into next year, FT says

OpenAI’s corporate restructuring is likely to push into next year as the company negotiates over key terms of its future partnership with Microsoft (MSFT), challenging plans to raise billions of additional dollars in funding, the Financial Times’ George Hammond and Stephen Morris report, citing people with knowledge of the talks. OpenAI has been in discussions to rewrite an existing commercial contract with Microsoft, which runs into 2030, and a deal would enable the start-up to complete plans for a restructure allowing investors to hold equity in the business and unlocking a future initial public offering, however there are still key issues the parties need to work out. Failure to reach a deal by December 31 would allow SoftBank (SFTBY) to withhold a $10B commitment to OpenAI under the terms of the conglomerate’s investment.