OpenAI to Halve Microsoft Revenue Share Amid Corporate Restructuring

OpenAI has informed investors that it plans to significantly reduce the share of its revenue going to Microsoft as part of a broader corporate restructuring. Initially, OpenAI had considered a major overhaul, but it has since scaled back, allowing its nonprofit parent organization to maintain control. This decision is expected to limit CEO Sam Altman’s authority, preserving the nonprofit’s influence over company operations.

According to financial projections shared with investors and reported by The Information, OpenAI intends to cut Microsoft’s revenue share by at least 50% by 2030. Under an existing agreement, Microsoft is entitled to 20% of OpenAI’s revenue through the end of this decade. The new plan would drop that figure to just 10%, aligning with a revised approach to commercial partnerships going forward.

This adjustment comes as Microsoft continues to expand its own AI infrastructure, including a $500 billion joint venture with Oracle and SoftBank to build new data centers in the U.S. Despite these parallel ambitions, Microsoft has stated that its mutual revenue-sharing agreements with OpenAI remain in effect through 2030. OpenAI, meanwhile, says it’s working closely with Microsoft to finalize the new structure.

While Microsoft declined to comment on the report, an OpenAI spokesperson confirmed ongoing negotiations regarding the recapitalization. The move underscores evolving dynamics in one of the most closely watched partnerships in AI, as both companies seek to balance collaboration with strategic independence in an increasingly competitive market.

Source: Reuters