New Delhi, May 12 -- OpenAI is currently rewriting the terms of its contract with Microsoft in 'high-stakes negotiations' that will help the AI startup launch a future initial public offering (IPO), according to a report in the Financial Times. Notably, Microsoft is one of the biggest holdout to OpenAI's recently announced plans to spin off its for-profit arm into a public benefit corporation (PBC).

The critical issue in the negotiations is reportedly how much equity Microsoft will receive in the new entity in exchange for its $13 billion-plus investment in OpenAI. Additionally, the two companies are said to be revisiting the terms of an older agreement that was drafted when OpenAI received its first $1 billion investment from Microsoft ...