Tech

OpenAI in talks with Microsoft to pave way for future initial public offering

Published

1 hour ago

May 13, 2025

American artificial intelligence research organisation OpenAI (owned by Sam Altman) is in talks with Microsoft to pave the way for its future initial public offering (IPO).

These important discussions take place as the AI research lab thinks about changes to its operational framework and the possibility of eventually becoming a publicly traded company.

Having made a sizable investment, the software company may exchange some equity in OpenAI’s for-profit company in exchange for ongoing access to advanced AI systems created beyond their current agreement.

The negotiations come days after tech billionaire Elon Musk informed that he is proceeding with his lawsuit against OpenAI after the firm shelved plans to become a for-profit organisation.

Through his attorney, Elon Musk disclosed this, claiming that OpenAI’s choice to continue being run as a charity “obscures critical details about the supposed ‘non-profit control’ arrangement.”

“Nothing in today’s announcement changes the fact that OpenAI will still be developing closed-source AI for the benefit of Altman, his investors, and Microsoft,” said Musk’s lawyer Marc Toberoff in a statement to Reuters on Monday. Toberoff said OpenAI’s decision to remain governed by a nonprofit entity “obscures critical details about the supposed ‘nonprofit control’ arrangement.”

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