• Home
  • OpenAI to reduce Microsoft revenue…

OpenAI to reduce Microsoft revenue share in restructuring plan

OpenAI has informed investors that it plans to significantly reduce the share of its revenue allocated to Microsoft as part of an ongoing restructuring

OpenAI has informed investors that it plans to significantly reduce the share of its revenue allocated to Microsoft as part of an ongoing restructuring, The Information reported on Tuesday.

According to the report, the artificial intelligence firm behind ChatGPT will cut the percentage of revenue shared with Microsoft by at least half by the end of the decade. Under an existing agreement, OpenAI is committed to sharing 20% of its revenue with Microsoft through 2030. However, recent private investor documents suggest the figure could drop to around 10% for Microsoft and other commercial partners by that time.

The move comes as OpenAI reconsiders a broader restructuring plan that would have shifted more control to its for-profit arm. Instead, its nonprofit parent organization will retain governance authority, a decision that effectively curbs the influence of CEO Sam Altman and reinforces the nonprofit’s oversight role.

Microsoft has been a key backer of OpenAI, investing billions and integrating OpenAI’s models into its products. The company said it maintains “revenue-sharing agreements that flow both ways,” and that the foundational terms of its partnership with OpenAI will remain in place until at least 2030.

“We continue to work closely with Microsoft, and look forward to finalizing the details of this recapitalization in the near future,” an OpenAI spokesperson told The Information.

The report also noted that Microsoft is seeking continued access to OpenAI’s technology beyond the current contract period.

In January, Microsoft revised certain terms of its deal with OpenAI following the announcement of a joint venture with Oracle and Japan’s SoftBank Group to develop up to \$500 billion worth of AI-focused data centers in the U.S.

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Email Us: [email protected]