The Information has shed light on OpenAI’s revised approach to investor relationships following its decision to abandon plans of becoming a fully commercial entity. Even Microsoft, OpenAI’s most prominent investor, will be subject to a revenue share cap of just 10%.
According to Reuters, referencing The Information, Microsoft is currently entitled to 20% of OpenAI’s revenue under their existing agreement, which remains in effect until 2030. Microsoft has invested around $14 billion in OpenAI, including a notable $6.6 billion infusion in October. With the new plan in place, OpenAI aims to cut Microsoft’s share of revenue at least in half by the end of this period.
Negotiations Continue Over Future Cooperation
Microsoft has a strong interest in retaining access to OpenAI’s technologies and future developments. Therefore, both parties are expected to continue discussions to reach mutually beneficial terms. While the agreement remains valid until 2030, full details are still being finalized. OpenAI representatives have confirmed that not all aspects of their collaboration with Microsoft have been agreed upon yet.
Microsoft representatives offered limited comments, stating only that the agreement outlines a mutual flow of revenue through 2030. OpenAI, on its side, has emphasized the preliminary nature of some terms and confirmed that further adjustments are possible, notes NIXsolutions. We’ll keep you updated as more information becomes available.
Joint Investment in National AI Infrastructure
In the broader context of U.S. AI development, OpenAI and Microsoft have also agreed to participate in funding the $500 billion Stargate project. This initiative aims to build out the national computing infrastructure for artificial intelligence. The decision to contribute aligns with political developments, particularly after Donald Trump’s return to the White House in January of this year.
This collaborative step underscores the ongoing strategic partnership between Microsoft and OpenAI, despite evolving terms in their revenue-sharing model.