OpenAI Plans to Reduce Revenue Share with Microsoft by 2030
According to a report by The Information, OpenAI is looking to pay a lower share of revenue to its investor and partner Microsoft by the year 2030. The financial documents cited in the report suggest that OpenAI aims to decrease its revenue share with Microsoft from the current 20% to 10% by the end of the decade.
This development comes in the wake of OpenAI’s decision to alter its restructuring plan. The company now plans to transform its for-profit arm into a public benefit corporation (PBC) while retaining control under its nonprofit division.
Microsoft has been a significant investor in OpenAI, with billions of dollars invested in the company. The partnership between the two entities, which is set to last until 2030, includes a revenue-sharing agreement and grants Microsoft rights to utilize OpenAI’s intellectual property in its AI products. Additionally, Microsoft has exclusivity on OpenAI’s APIs on the Azure platform.
However, reports suggest that Microsoft has not yet approved OpenAI’s proposed corporate structure. Bloomberg reported that Microsoft is a key holdout in the restructuring plan, as the tech giant wants to ensure that its substantial investment is protected under the new structure.
As of now, both OpenAI and Microsoft have not provided any official comments on the matter.
