As we reported recently, an initial plan for the lucrative restructuring of OpenAI has been shelved. Now, according to the FT, the start-up is in talks with Microsoft to reshape certain contracts in order to establish a for-profit entity. This move would open the door to an IPO. Bloomberg believes that this is the stated goal and one of the reasons behind the high-profile arrival of French executive Fidji Simo.

A French woman at the helm

Fidji Simo joins OpenAI as chief application officer. It's a somewhat grandiose title, but one that speaks volumes: she becomes the company's number two, above Brad Lightcap (chief operating officer) and Sarah Friar (chief financial officer).

There are two possible interpretations behind this appointment: on the one hand, a clear desire to separate the two faces of OpenAI. Fidji Simo would take charge of business and product, while Sam Altman would retain control over research and security around generative AI. On the other hand, it could be a real signal to Wall Street. Ms. Simo is renowned for leading Instacart to profitability and its IPO. The message seems clear.

Microsoft, the key player

Microsoft is OpenAI's largest investor. And, of course, a key player in any restructuring attempt. The central question is: how much of the capital would the Redmond-based company get if OpenAI switched to a 100% for-profit model? As a reminder, Microsoft has injected over $13bn into the company since 2019.

According to the FT, the two companies are currently reviewing the terms of their partnership. The contract covers access to models, intellectual property, and a share of revenue generated until 2030. Microsoft is reportedly willing to give up part of its stake in the future structure in exchange for extended access to OpenAI's future technologies, well beyond the initial expiry date.