OpenAI Aims to Halve Revenue Share with Microsoft by 2030

OpenAI, the creator of the widely-used AI service ChatGPT, has announced 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 share by at least half by the end of the decade.

Previously, OpenAI had withdrawn a significant restructuring plan that would have given its non-profit parent company control, potentially limiting the power of CEO Sam Altman. 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 changes 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. Sources familiar with the matter indicate that Microsoft is currently in discussions with OpenAI regarding the terms of the licensing and revenue-sharing agreement, its equity holdings, and other issues.

Under the existing agreement, OpenAI has committed to sharing 20% of its revenue with Microsoft until 2030. According to private documents, OpenAI has informed some potential and existing investors that by 2030, it will only share 10% of its revenue with commercial partners, including Microsoft. Additionally, Microsoft is seeking access to OpenAI's technology beyond 2030.

In January, Microsoft modified some key terms of its agreement with OpenAI. Microsoft stated that it has a "two-way revenue-sharing agreement" with OpenAI, and the key elements of their partnership will remain in effect 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."