OpenAI Aims to Decrease Revenue Share Payments to Microsoft by 2030

Per The Information, OpenAI expects to decrease the revenue share it provides to its investor and key collaborator Microsoft by 2030, as indicated in financial documents.

This shift comes after OpenAI’s recent decision to abandon a major restructuring plan, choosing instead to transition its for-profit branch into a public benefit corporation (PBC), which will continue to be overseen by its nonprofit arm.

Currently, OpenAI allocates 20% of its gross revenue to Microsoft, but it has communicated to investors a projected reduction to 10% for its business partners, including Microsoft, by the end of the decade, as reported by The Information.

Microsoft has invested tens of billions into OpenAI, and the two companies currently operate under a contract lasting until 2030, which includes shared revenue. This agreement also gives Microsoft rights to OpenAI’s intellectual property in its AI products and exclusivity for OpenAI’s APIs on Azure.

According to Bloomberg on Monday, Microsoft has yet to approve OpenAI’s proposed corporate restructuring, as the larger tech company likely aims to ensure that the new framework protects its significant investment.

Neither OpenAI nor Microsoft immediately responded to requests for comments.