OpenAI Plans to Reduce Microsoft's Revenue Share by 2030 Amid Restructuring

OpenAI expects to cut share of revenue it pays Microsoft by 2030 | TechCrunch

OpenAI sees itself paying a lower share of revenue to its investor and close partner Microsoft by 2030 than it currently does, The Information reported, citing financial documents. The news comes after OpenAI this week changed tack on a major restructuring plan to pursue a new plan that would see its for-profit arm becoming a public benefit corporation (PBC) but continue to be controlled by its nonprofit division. OpenAI currently has an agreement to share 20% of its top line with Microsoft, but the AI company has told investors it expects to share 10% of revenue with its business partners, including Microsoft, by the end of this decade, The Information reported. Microsoft has invested tens of billions in OpenAI, and the two companies currently have a contract until 2030 that includes revenue sharing from both sides. The deal also gives Microsoft rights to OpenAI IP within its AI products, as well as exclusivity on OpenAI's APIs on Azure. Microsoft has not yet approved OpenAI's proposed corporate structure, Bloomberg reported on Monday, as the bigger tech company reportedly wants to ensure the new structure protects its multi-billion-dollar investment. OpenAI and Microsoft did not immediately return requests for comment.

OpenAI's new plan means less cash for Microsoft

OpenAI expects to reduce the share of its revenue paid to Microsoft by 2030, according to a report by The Information, citing the company's financial documents. This development comes as OpenAI has unveiled a major restructuring plan, transforming its for-profit arm into a public benefit corporation (PBC) while remaining under the control of its nonprofit division. Currently, OpenAI is contracted to share 20% of its revenue with Microsoft, but it anticipates this figure will drop to 10% by the end of the decade, not just for Microsoft, but for its business partners overall, The Information reported. Microsoft has invested tens of billions of dollars in OpenAI, and their agreement, set to expire in 2030, includes mutual revenue sharing. Additionally, the deal grants Microsoft access to OpenAI's intellectual property within its AI products and exclusive rights to OpenAI's APIs on Azure. Microsoft's approval of OpenAI's proposed corporate restructuring is pending, Bloomberg reported, as the tech giant seeks assurances that its substantial investment is protected under the new structure. OpenAI and Microsoft have not responded to requests for comment.

OpenAI Plans to Cut Microsoft Revenue Share After Restructuring: Report

In January, Microsoft changed some key terms of a deal with OpenAI OpenAI has told investors it will share a smaller fraction of revenue with major backer Microsoft as it moves ahead with its restructuring, The Information reported on Tuesday. The ChatGPT-maker has dialed back a significant restructuring plan, with its nonprofit parent retaining control in a move that is likely to limit CEO Sam Altman's power over the firm. In financial projections shared with investors, OpenAI said the percentage of revenue shared with Microsoft would drop by at least half by the end of this decade, the report said. In an existing deal, OpenAI has agreed to share 20 percent of its revenue with Microsoft through 2030, the Information reported. OpenAI told some potential and current investors that it would only share 10 percent of revenues with commercial partners including Microsoft by 2030, the report said, citing private documents, adding that Microsoft wants access to OpenAI's technology beyond 2030. In January, Microsoft changed some key terms of a deal with OpenAI after its joint venture with Oracle and Japan's SoftBank Group to build up to $500 billion (roughly Rs. 42,31,976 crore) of new artificial intelligence data centers in the United States. Microsoft has said it has "revenue sharing agreements that flow both ways" with OpenAI, with the key elements of the partnership remaining in place for the duration of the contract through 2030. "We continue to work closely with Microsoft, and look forward to finalising the details of this recapitalisation in the near future," an OpenAI spokesperson told The Information. Microsoft declined to comment on the report, while OpenAI did not immediately respond to a Reuters request for comment outside regular business hours. © Thomson Reuters 2025

OpenAI To Slash Microsoft Revenue Share By 2030: Report - Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL)

OpenAI reportedly plans to cut the share of revenue it pays to Microsoft Corporation MSFT by at least half by the end of the decade. What Happened: OpenAI has informed investors that it will reduce the percentage of revenue it shares with Microsoft, its largest backer, reported Reuters on Tuesday (via The Information). Currently, OpenAI has an agreement to share 20% of its revenue with Microsoft through 2030. However, internal financial projections shared with investors suggest that figure will drop to just 10% by the end of the decade, the report said, citing private documents. See Also: Elon Musk Says Will Come As A 'Surprise To Most' As China's Economy Surpasses US And EU Amid Rising Tariffs And Growing Recession Fears An OpenAI spokesperson told The Information, "We continue to work closely with Microsoft, and look forward to finalizing the details of this recapitalization in the near future." OpenAI and Microsoft did not immediately respond to Benzinga's request for comments. Why It's Important: The latest development comes a day after OpenAI's nonprofit parent decided to retain control over the company. In January, Microsoft revised certain terms of its agreement with OpenAI following the announcement of a separate joint venture involving Oracle Corp ORCL and Japan's SoftBank Group SFTBF SFTBY to invest up to $500 billion in new AI data centers across the U.S. Microsoft has stated that its agreement with OpenAI includes reciprocal revenue-sharing provisions and that the core components of their partnership are set to remain active through the end of the contract in 2030, the report said. Microsoft received a robust growth score of 64.83% from Benzinga Edge Stock Rankings. Click here to compare its performance with other major tech firms such as Oracle and SoftBank. Read Next: JPMorgan CEO Jamie Dimon Warns Recession Is Best-Case Outcome Of Trump Trade War Photo Courtesy: Hamara On Shutterstock.com Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. MSFTMicrosoft Corp$436.00-0.04%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum72.58Growth64.83Quality37.11Value14.26Price TrendShortMediumLongOverviewORCLOracle Corp$149.450.11%SFTBFSoftBank Group Corp$52.45-0.47%SFTBYSoftBank Group Corp$26.08-0.84%Market News and Data brought to you by Benzinga APIs

Report: OpenAI Aims to Reduce Revenue Sharing With Microsoft | PYMNTS.com

The artificial intelligence startup has an agreement with Microsoft to share 20% of its top-line revenue. However, OpenAI told investors it expects to share just 10% of its revenue with its partners, Microsoft among them, by 2030, The Information reported Tuesday (May 6), citing financial documents. The company continues "to work closely with Microsoft and [looks] forward to finalizing the details of this recapitalization in the near future," an OpenAI spokesperson said, per the report. Microsoft has invested billions of dollars in OpenAI, with an agreement to continue sharing revenue until 2030, the report said. Meanwhile, Microsoft's strategy of installing AI as a default feature on its software seemed to be bearing fruit. The company recorded a 10% uptick in revenue from consumer subscriptions to Office 365 in the three months ending in March versus a year prior. News about OpenAI's revenue plans came one day after the company announced it would revise its corporate plan to keep its nonprofit parent firmly in control of the for-profit entity behind ChatGPT. That decision reverses the company's earlier plan that would have given up voting power in exchange for easier fundraising. "When we started OpenAI, we did not have a detailed sense for how we were going to accomplish our mission," CEO Sam Altman wrote in a Monday (May 5) company blog post. "We started out staring at each other around a kitchen table, wondering what research we should do. Back then, we did not contemplate products, a business model. We could not contemplate the direct benefits of AI being used for medical advice, learning, productivity and much more, or the needs for hundreds of billions of dollars of compute to train models and serve users." OpenAI is in the middle of planning a $40 billion funding round led by SoftBank, which could value the company at roughly $300 billion. The round had been contingent on the company switching to for-profit control. Keeping the nonprofit arm could complicate the fundraising effort, but it could also help to defuse a lawsuit from OpenAI co-founder Elon Musk, who accuses the company of straying from its public-interest roots.

OpenAI Reduces Microsoft Revenue Share as Both Companies Expand AI Ecosystems

Microsoft is reportedly working to reduce its reliance on OpenAI by developing its own advanced AI models. | Credit: Anadolu / Getty Images. OpenAI plans to reduce the share of revenue it provides to Microsoft from 20% to 10% by 2030, as part of a broader restructuring strategy. The decision follows OpenAI's reversal of its intention to become a for-profit company. Instead, it will remain under the control of its nonprofit board while transitioning its for-profit subsidiary into a public-benefit corporation. As both companies continue to innovate in artificial intelligence, the shift in revenue sharing reflects their strategic focus on building expansive AI ecosystems. OpenAI To Cut Microsoft's Revenue Share On Tuesday, May 6, it was reported that OpenAI informed investors it would significantly reduce the portion of revenue shared with Microsoft, its primary financial backer. According to The Information , the revenue share, currently set at 20% until 2030, will be cut in half or more by the end of the decade. Investors were told that after 2030, OpenAI would allocate only 10% of its revenues to Microsoft and other commercial partners. However, Microsoft is reportedly seeking continued access to OpenAI's technology beyond 2030. Strategic Shifts The revised revenue-sharing model comes as OpenAI continues to attract significant investments from global tech leaders. In January, the company signed a deal with Japan's SoftBank Group and Oracle to invest $500 billion in building new AI data centers across the U.S. The Japanese company also led a $40 billion funding round for the company, at a valuation of $300 billion. Meanwhile, Microsoft is reportedly working to reduce its reliance on OpenAI by developing its own advanced AI models. In March, reports indicated that Microsoft's AI division was training reasoning models that could directly compete with OpenAI's offerings. The company is also testing models from other AI firms. Despite these developments, both companies have stated their continued commitment to the partnership. "We continue to work closely with Microsoft, and look forward to finalizing the details of this recapitalization in the near future," an OpenAI spokesperson told The Information. OpenAI's Expensive AGI Pursuit OpenAI, led by CEO Sam Altman, is undertaking a costly mission to achieve artificial general intelligence (AGI). In a letter to employees published on Monday, Altman reaffirmed OpenAI's dedication to building AGI. "We now see a path for AGI to become the most capable tool in human history, empowering individuals directly," Altman wrote. "If we succeed, we believe people will build extraordinary things for one another and drive lasting improvements in society and quality of life." Altman added that the company aims to "build a brain for the world and make it super easy for people to use for whatever they want." However, the pursuit of AGI comes with staggering financial demands. According to The Information , OpenAI is spending most of its revenue on computing power needed to operate and develop its AI models. The company expects these costs to exceed $320 billion between 2025 and 2030, the report stated.

OpenAI plans to slash revenue share to Microsoft- The Information By Investing.com

Investing.com-- OpenAI plans to severely reduce the amount of revenue shared with Microsoft (NASDAQ:MSFT), The Information reported on Tuesday, as the artificial intelligence startup undergoes a major restructuring. OpenAI plans to reduce its revenue shared with Microsoft by at least 50% by the end of the decade, the report said. This comes as OpenAI undergoes a sweeping restructuring, which major investor Microsoft still needs to sign off on. The company had earlier this week signaled that it will no longer seek to convert into a for-profit enterprise, although it will still restructure to allow for more capital raising. The Information report also comes amid increased speculation that Microsoft is quietly tapering off its partnership with OpenAI, especially as the AI startup recently announced a major capital investment from Japan's SoftBank (TYO:9984). OpenAI and Softbank (OTC:SFTBY) announced a $500 billion venture to build more AI data centers in the U.S., with Microsoft playing a limited role in the project. Microsoft is still OpenAI's biggest investor, having backed the firm since at least 2019. OpenAI's flagship GPT models are used across Microsoft's AI offerings.

OpenAI plans to cut Microsoft revenue share after restructuring, The Information reports

(Reuters) -OpenAI has told investors it will share a smaller fraction of revenue with major backer Microsoft as it moves ahead with its restructuring, The Information reported on Tuesday. The ChatGPT-maker has dialed back a significant restructuring plan, with its nonprofit parent retaining control in a move that is likely to limit CEO Sam Altman's power over the firm. In financial projections shared with investors, OpenAI said the percentage of revenue shared with Microsoft would drop by at least half by the end of this decade, the report said. In an existing deal, OpenAI has agreed to share 20% of its revenue with Microsoft through 2030, the Information reported. OpenAI told some potential and current investors that it would only share 10% of revenues with commercial partners including Microsoft by 2030, the report said, citing private documents, adding that Microsoft wants access to OpenAI's technology beyond 2030. In January, Microsoft changed some key terms of a deal with OpenAI after its joint venture with Oracle and Japan's SoftBank Group to build up to $500 billion of new artificial intelligence data centers in the United States. Microsoft has said it has "revenue sharing agreements that flow both ways" with OpenAI, with the key elements of the partnership remaining in place for the duration of the contract through 2030. "We continue to work closely with Microsoft, and look forward to finalizing the details of this recapitalization in the near future," an OpenAI spokesperson told The Information. OpenAI and Microsoft did not immediately respond to Reuters' requests for comment outside regular business hours. (Reporting by Harshita Meenaktshi in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich)