May 9th, 2025
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By 2030, OpenAI expects to pay a smaller percentage of its revenue to its major investor and partner, Microsoft, compared to the current arrangement, according to financial documents cited by The Information.
This news follows OpenAI's decision this week to change their main plan for restructuring. Their new plan suggests that their part that makes money will become a public benefit corporation (PBC), but it will still be controlled by their part that is not for profit.
OpenAI currently shares 20% of its income with Microsoft because of an agreement. However, the AI company has told people who invest in it that it plans to share only 10% of its income with its partners, including Microsoft, by the end of 2030, according to The Information.
Microsoft has put tens of billions into OpenAI, and they have a contract until 2030 where they share the money they make. This agreement also gives Microsoft the right to use OpenAI's technology in its own AI products, and they are the only ones who can use OpenAI's APIs on Azure.
Microsoft has not yet endorsed OpenAI’s suggested corporate framework, Bloomberg stated on Monday, as the larger technology corporation reportedly seeks to safeguard its multi-billion-dollar investment through the new structure.
OpenAI and Microsoft did not immediately respond to inquiries seeking comment.
May 9th, 2025
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