OpenAI to Reduce Microsoft Revenue Share Following Restructuring: Report

OpenAI is set to reduce the percentage of revenue it shares with Microsoft from 20% to at least 10% by the end of the decade as it continues with its restructuring plan, The Information reported on Tuesday, citing private financial projections shared with investors. The ChatGPT developer’s current agreement with Microsoft, its major backer, stipulates that OpenAI will share 20% of its revenue through 2030. However, in a move that is expected to limit CEO Sam Altman’s power, OpenAI’s nonprofit parent is retaining control after dialing back a significant restructuring plan. Microsoft has stated that while the revenue-sharing percentage may change, the key elements of their partnership remain intact until the contract expires in 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. The development comes after Microsoft altered some key terms of its deal with OpenAI in January following a joint venture with Oracle and Japan’s SoftBank Group to invest up to $500 billion in new AI data centers in the United States.