OpenAI to Reduce Microsoft Revenue Share by 2030
▼ Summary
– OpenAI plans to reduce its revenue share to Microsoft from 20% to 10% by 2030, according to financial documents reported by The Information.
– OpenAI is restructuring its for-profit arm into a public benefit corporation (PBC) while remaining under the control of its nonprofit division.
– Microsoft has invested heavily in OpenAI and holds rights to OpenAI’s IP and exclusive API access on Azure under their current contract until 2030.
– Microsoft has not yet approved OpenAI’s proposed corporate restructuring, seeking assurances to protect its multi-billion-dollar investment.
– OpenAI and Microsoft declined to comment on the reports regarding revenue sharing and corporate restructuring.
OpenAI is reportedly planning to significantly reduce the revenue share it pays to Microsoft over the coming years, according to internal financial documents. The artificial intelligence research organization currently allocates 20% of its revenue to the tech giant but expects this figure to drop to 10% by 2030 as part of revised partnership terms.
This development follows OpenAI’s recent strategic shift in corporate structure, where its for-profit division will transition into a public benefit corporation (PBC) while remaining under the governance of its nonprofit parent entity. The restructuring aims to balance commercial growth with OpenAI’s founding mission of ensuring AI benefits humanity broadly.
Microsoft, which has poured billions into OpenAI through a long-term partnership, holds exclusive rights to integrate OpenAI’s intellectual property into its own AI offerings. Their current agreement, extending through 2030, also grants Microsoft sole access to OpenAI’s application programming interfaces (APIs) on its Azure cloud platform. However, recent reports indicate Microsoft has yet to formally approve OpenAI’s proposed structural changes, as the company seeks safeguards for its substantial financial stake.
Neither OpenAI nor Microsoft provided immediate comments on the reported adjustments to their revenue-sharing arrangement. The potential reduction could mark a significant shift in their collaboration, reflecting OpenAI’s evolving priorities as it scales its operations and refines its governance model.
(Source: TechCrunch)
