May 9th, 2025
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OpenAI thinks it will pay a smaller part of its money to Microsoft, its investor and partner, by 2030 compared to what it pays now, according to financial papers.
This news follows OpenAI's recent decision to change its plan for a big reorganization. They will now try a new plan where their part that makes money will become a "public benefit corporation" (PBC). However, their part that doesn't make money will still be in control.
According to The Information, OpenAI currently shares 20% of its income with Microsoft. However, the company has told investors that by the end of 2030, it plans to share only 10% of its income with all its business partners, including Microsoft.
Microsoft has put a lot of money into OpenAI, and they have an agreement until 2030. This agreement means they will share the money they make. It also allows Microsoft to use OpenAI's ideas in its AI products and be the only company to use OpenAI's technology on its cloud platform, Azure.
Bloomberg reported on Monday that Microsoft has not yet agreed to OpenAI's suggested company structure. This is because the large tech company reportedly wants to make sure the new structure keeps its large investment safe.
OpenAI and Microsoft did not reply immediately when asked for their opinions.
May 9th, 2025
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