By Mackenzie Tatananni
Microsoft stock rose in premarket trading Monday following a report that the company was revising the terms of its partnership with OpenAI to allow the ChatGPT maker to launch a future initial public offering.
The companies also are rewriting the terms of a wider contract that was drafted when Microsoft and OpenAI first unveiled an exclusive partnership in 2019, the Financial Times reported, citing people familiar with the matter.
Neither company has publicly acknowledged the report. Microsoft and OpenAI didn't immediately respond to requests for comment from Barron's.
The latest news regarding the partnership came in January, when Microsoft indicated it had lost its status as OpenAI's sole cloud provider and noted that the artificial-intelligence company had made a "new, large commitment" to Azure, Microsoft's AI cloud computing platform.
OpenAI said last week that it had abandoned a plan to place its business under the control of a for-profit entity following discussions with civic leaders and the attorneys general of California and Delaware.
Microsoft stock gained 2.3% to $448.62 on Monday. The shares received a boost on the heels of an announcement that the U.S. would temporarily slash extra tariffs on Chinese imports to 30% from 145%.
Futures tracking the S&P 500 and Nasdaq Composite were up 3.1% and 4%, respectively.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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May 12, 2025 08:05 ET (12:05 GMT)
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