Microsoft’s partnership with OpenAI is complicated, and the pair are intertwined both technologically and financially. While it’s been widely reported that OpenAI shares 20 percent of its revenues with Microsoft, there are additional revenue-sharing agreements in place, according to sources who are familiar with the arrangement.

At the heart of the dispute is OpenAI's desire to restructure to a for-profit business, a move that requires Microsoft's approval.

Microsoft is prepared to abandon its high-stakes negotiations with OpenAI over the future of its alliance, the Financial Times reported on Wednesday. The tech giant has considered pausing discussions with the ChatGPT maker if the two sides remain unable to agree on critical issues such as the size of Microsoft's future stake in OpenAI,