OpenAI to reduce Microsoft revenue share in restructuring plan

• Published On: 08 May 2025 at 07:33

The Information reported on Tuesday that OpenAI has informed investors that it intends to dramatically lower the share of its revenue allotted to Microsoft as part of an ongoing restructuring.

According to the article, the artificial intelligence startup behind ChatGPT plans to slash its revenue share with Microsoft by at least half by the end of the decade. Under an existing arrangement, OpenAI has agreed to split 20% of its revenue with Microsoft until 2030. However, according to recent private investor documents, the proportion for Microsoft and other commercial partners might be as low as 10% by then.

The move comes as OpenAI examines a bigger restructuring plan that would have given its for-profit arm more authority. Instead, the nonprofit parent organization will retain governance authority, thus reducing CEO Sam Altman's influence and reinforcing the nonprofit's oversight role.

Microsoft has been a prominent supporter of OpenAI, contributing billions of dollars and incorporating the company's models into its products. The company stated that it has "revenue-sharing agreements that flow both ways," and that the fundamental conditions of its relationship with OpenAI will remain in effect until at least 2030.

"We continue to work closely with Microsoft, and we look forward to finalizing the details of this recapitalization in the near future," an OpenAI spokeswoman told The Information.

According to the article, Microsoft wants to continue using OpenAI's technology once the current contract expires.

In January, Microsoft changed several terms of its arrangement with OpenAI following the launch of a joint venture with Oracle and Japan's SoftBank Group to create up to \$500 billion in AI-focused data centers in the US.