OpenAI Aims to Halve Revenue Share with Microsoft by 2030

OpenAI has informed its investors that it plans to reduce the proportion of revenue shared with microsoft as part of its restructuring efforts. According to financial projections shared with investors, OpenAI aims to decrease this proportion by at least half by the end of the decade. This move comes after OpenAI withdrew a significant restructuring plan, which would have allowed its non-profit parent company to retain control, potentially limiting the power of CEO Sam Altman over the company. Microsoft, which has invested $13.75 billion in OpenAI, has been the largest opponent of this restructuring among investors. Microsoft is seeking assurances that the structural adjustments will adequately protect its investment interests. Currently, Microsoft is actively negotiating the details of the restructuring plan.

Microsoft's relationship with OpenAI is unique compared to other investors, as the two companies have a licensing and revenue-sharing agreement. Microsoft is currently in discussions with OpenAI regarding the terms of this agreement, including licensing and revenue-sharing, equity holdings, and other issues. Under the existing agreement, OpenAI has committed to sharing 20% of its revenue with Microsoft until 2030. However, OpenAI has indicated to some potential and existing investors that it plans to reduce this share to 10% by 2030, with the understanding that Microsoft will gain access to OpenAI's technology after that year. In January, Microsoft modified some key terms of its agreement with OpenAI. Previously, Microsoft, along with Oracle and the Japanese SoftBank Group, had established a joint venture to build up to $500 billion in new AI data centers in the United States. Microsoft has stated that it has a "two-way revenue-sharing agreement" with OpenAI, with the key elements of their partnership set to continue until 2030. An OpenAI spokesperson commented, "We will continue to work closely with Microsoft and look forward to finalizing the details of the capital restructuring in the near future."

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