May 9th, 2025
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According to financial documents cited by The Information, OpenAI anticipates a reduction in the proportion of its revenue shared with its key investor and partner, Microsoft, by the year 2030.
This news comes after OpenAI recently changed its mind 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, but it will still be controlled by their part that doesn't make money.
According to The Information, OpenAI presently has a deal to allocate a fifth of its gross revenue to Microsoft, but the AI firm has conveyed to investors its projection to share a tenth of its revenue with its commercial allies, including Microsoft, by the close of this decade.
Microsoft has committed substantial financial resources, exceeding tens of billions, to OpenAI. The existing contractual agreement between the entities is set to continue until 2030 and encompasses a mutual revenue-sharing arrangement. Furthermore, the terms of this agreement grant Microsoft access to OpenAI's intellectual property for integration into its artificial intelligence offerings and provide exclusive utilization rights for OpenAI’s APIs within the Azure platform.
According to a Bloomberg report on Monday, Microsoft has yet to endorse OpenAI's suggested corporate framework, reportedly seeking assurance that the revised structure safeguards its considerable multi-billion-dollar investment.
OpenAI and Microsoft did not promptly respond to inquiries for comment.
May 9th, 2025
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