OpenAI wants to turn into a for-profit company, Microsoft sets obstacles, negotiations focus on four key points

Altman, OpenAI's chief executive, wants to turn the nonprofit-run artificial intelligence development company into a for-profit company, and the biggest obstacle he faces is Microsoft. The company is hugely influential in this process because it has committed more than $13 billion to OpenAI. The two companies have been negotiating potential changes to OpenAI's structure since October, and discussions have focused on four areas: Microsoft's stake in the for-profit entity; whether Microsoft will continue to be OpenAI's exclusive Cloud as a Service provider; how long Microsoft will maintain the right to use OpenAI's intellectual property to meet the needs of its products; and whether Microsoft will continue to take 20% of OpenAI's revenue. The information comes from people familiar with the discussions with Altman. It's unclear when OpenAI and Microsoft plan to complete the process, but the two sides are moving fast and under time pressure: If OpenAI fails to complete the transition within the next two years, investors in the most recent funding round can get their money back, along with 9% interest - a total of about $7.20 billion. Company leaders have told employees that OpenAI wants to buy back some of their shares after the earnings transition, so employees currently have good reason to want to complete the change as soon as possible.