OpenAI has informed investors that it intends to reduce the percentage of revenue shared with major backer Microsoft as part of its ongoing restructuring efforts, according to a report by The Information. The ChatGPT developer had previously agreed to share 20% of its revenue with Microsoft through 2030, but now plans to slash this figure by at least half by the end of the decade.
Financial Projections and Partnership Details
In financial projections presented to investors, OpenAI indicated that the revenue share with Microsoft and other commercial partners would drop to 10% by 2030. This move is likely linked to the company’s restructuring plan, which has been scaled back to maintain control under its nonprofit parent. This development may limit the influence of CEO Sam Altman over the company.
Microsoft, on the other hand, is seeking continued access to OpenAI’s technology beyond 2030. The partnership between the two companies has been significant, with Microsoft having made substantial investments in OpenAI. In January, Microsoft adjusted key terms of its deal with OpenAI following a joint venture with Oracle and Japan’s SoftBank Group to develop up to $500 billion worth of new artificial intelligence data centers in the United States.
Response from OpenAI and Microsoft
An OpenAI spokesperson stated that the company continues to work closely with Microsoft and anticipates finalizing the details of its recapitalization soon. Microsoft chose not to comment on the report.
The changes in OpenAI’s revenue-sharing model reflect the company’s evolving strategy and financial projections as it continues to develop its artificial intelligence capabilities.
