May 9th, 2025
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According to The Information, citing financial documents, OpenAI anticipates allocating a smaller proportion of its revenue to its investor and key partner, Microsoft, by the year 2030 compared to the current arrangement.
This news follows OpenAI's recent change in direction regarding a big plan to reorganize. They are now choosing 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 is not for profit.
OpenAI currently shares a fifth of its gross revenue with Microsoft under a standing agreement, but the AI company has informed investors of its intention to reduce this to a tenth of revenue shared among all business partners, including Microsoft, within the next seven years, according to The Information.
Microsoft has committed substantial financial resources, amounting to tens of billions, to OpenAI. Their current agreement, extending until 2030, features a reciprocal revenue-sharing arrangement. Furthermore, the deal grants Microsoft access to OpenAI's intellectual property for integration into their AI offerings and exclusive rights to utilize OpenAI's APIs on the Azure platform.
According to a Bloomberg report on Monday, Microsoft has not yet sanctioned OpenAI's proposed organisational framework, reportedly because the larger technology corporation seeks assurances that the new configuration will safeguard its substantial multi-billion-dollar stake.
OpenAI and Microsoft did not promptly respond to inquiries seeking comment.
May 9th, 2025
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