OpenAI anticipates significantly reducing the revenue share it pays Microsoft by the end of this decade, according to new financial documentation. Presently, OpenAI commits 20% of its revenue in payments to Microsoft, but forecasts lowering this figure to around 10% by 2030. This update on revenue-sharing arrangements follows closely on the heels of OpenAI’s announced restructuring plan, which involves reorganizing its for-profit subsidiary into a public benefit corporation (PBC), driven and controlled by its existing nonprofit entity.
The restructuring process, however, has encountered hurdles, particularly around obtaining buy-in from Microsoft. The larger tech company, having invested many billions of dollars into OpenAI, remains cautious and seeks assurances that the restructure will safeguard its substantial investment. Under the current terms agreed by both companies, Microsoft receives revenue sharing benefits while maintaining exclusive rights to integrate OpenAI’s intellectual property within its AI product ecosystem and grant Azure exclusive hosting of OpenAI’s APIs.
Negotiations between the two companies continue, and Microsoft has yet to formally approve the proposed new corporate structure. Neither OpenAI nor Microsoft has provided immediate public comment relating to these recent developments.
