OpenAI has informed investors that it plans to cut Microsoft’s revenue share from 20% to 10% by 2030, as part of a broader restructuring effort. The move comes as OpenAI scales back a previously planned overhaul that would have increased CEO Sam Altman’s control over the organization. Instead, its nonprofit parent will retain governance authority, effectively limiting Altman’s influence.
OpenAI, which has received $13.75 billion in investments from Microsoft, including a $10 billion deal announced in early 2023, currently shares 20% of its revenue with the tech giant. However, internal financial documents and investor briefings indicate that OpenAI expects to halve that figure, offering just 10% of revenues to Microsoft and other commercial partners by the end of the decade.
Despite the shift, both companies have reaffirmed their commitment to the ongoing partnership. Microsoft, which relies on OpenAI’s models to power products like Copilot and hosts OpenAI’s APIs exclusively on Azure, stated that the core elements of the collaboration will continue through 2030.
Microsoft has emphasized that its revenue-sharing agreements with OpenAI flow both ways, ensuring mutual benefits throughout the contract period. The company also revised aspects of its agreement with OpenAI in January, following the announcement of a $500 billion AI data center initiative in partnership with Oracle and Japan’s SoftBank Group.
While OpenAI’s restructuring limits Altman’s influence, Microsoft remains keen on maintaining access to OpenAI’s technology beyond 2030. An OpenAI spokesperson stated, “We continue to work closely with Microsoft and look forward to finalizing the details of this recapitalization in the near future.”
With OpenAI’s strategic shift underway, industry analysts are watching closely to see how the revised financial structure will impact the AI landscape.
