May 9th, 2025
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According to The Information, which referenced financial documents, OpenAI anticipates allocating a smaller portion of its earnings to its investor and key ally, Microsoft, by 2030, compared to its current arrangement.
This news comes after OpenAI changed its mind this week about a big plan to reorganize. Instead, they will follow a new plan where their part that makes money will become a public benefit corporation (PBC), but it will still be managed by their part that doesn't make money.
According to The Information, OpenAI presently has a pact to allocate a fifth of its gross revenue to Microsoft, though the AI firm has informed investors it anticipates sharing a tenth of revenue with its collaborators, including Microsoft, before the decade concludes.
Microsoft has put tens of billions into OpenAI, and the two companies have a contract until 2030. This contract includes sharing revenue from both sides. The deal also gives Microsoft the right to use OpenAI's intellectual property in its AI products. Additionally, Microsoft has exclusive access to OpenAI’s APIs on Azure.
According to a Bloomberg report on Monday, Microsoft has not yet approved OpenAI's suggested company structure. This is reportedly because the larger tech company wants to protect the money it has invested, which is billions of dollars.
Requests for comment from OpenAI and Microsoft went unanswered without delay.
May 9th, 2025
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