OpenAI plans to reduce the revenue share it pays to Microsoft by 2030. Currently, this share is 20%. The company expects to lower it to 10% by the end of the decade. This change follows a significant restructuring plan for OpenAI’s business setup.
Details on OpenAI’s New Business Strategy
OpenAI intends to transform its for-profit subsidiary into a public benefit corporation. Despite this, it will remain controlled by its nonprofit parent. This structure aims to attract major funding while emphasizing AI’s benefit to humanity.
Microsoft has invested roughly $13.75 billion in OpenAI since 2019. The partnership includes an agreement running until 2030 with revenue sharing between the two companies. Furthermore, Microsoft has exclusive rights to OpenAI’s APIs on the Azure platform.
The Information reported that OpenAI forecasts sharing only 10% of revenue with partners by 2030. This contrasts with the current 20% revenue share with Microsoft.
OpenAI projects a $5 billion loss for the current year on $3.7 billion revenue. It targets profitability by 2029 and aims to grow annual revenue to $100 billion by then.
Partnership Adjustments and Future Prospects
Microsoft updated its agreement in January 2025. It allowed OpenAI to collaborate with Oracle and SoftBank on the $500 billion Stargate AI data center project.
Despite this flexibility, Microsoft maintains exclusivity over OpenAI’s APIs hosted on Azure. Microsoft seeks to continue technology access post-2030.
Microsoft’s official blog highlights the strategic partnership evolution aimed at advancing AI capabilities.
However, Bloomberg reported Microsoft has not yet approved the new corporate structure. The concern focuses on protecting their multi-billion-dollar investment.
The evolving financial and structural decisions reflect the changing AI industry. Companies like OpenAI and Microsoft are adjusting partnerships for competitiveness.
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