OpenAI expects to cut share of revenue it pays Microsoft by 2030

According to financial documents cited by The Information, OpenAI plans to decrease the share of revenue it pays to Microsoft by 2030.

This decision follows OpenAI’s recent shift in strategy, opting to restructure as a public benefit corporation controlled by its nonprofit division.

Currently, OpenAI shares 20% of its revenue with Microsoft, but the company aims to reduce this to 10% by the end of the decade, as reported by The Information.

Microsoft, a significant investor in OpenAI, has a contract in place until 2030 that includes revenue sharing and access to OpenAI’s intellectual property and APIs on Azure.

Bloomberg reported that Microsoft has not yet approved OpenAI’s proposed corporate structure, as it seeks to protect its substantial investment in the AI company.

Both OpenAI and Microsoft have not responded to requests for comment.