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OpenAI Sets Revenue-Sharing Cap in Revised Microsoft Agreement: The Infor...

OpenAI has agreed to limit the total amount of revenue it shares with Microsoft to $38 billion under revised terms between the two companies, The Information reported. The arrangement emerged as...

OpenAI Sets Revenue-Sharing Cap in Revised Microsoft Agreement: The Infor...

OpenAI

Microsoft

OpenAI has agreed to limit the total amount of revenue it shares with Microsoft to $38 billion under revised terms between the two companies, The Information reported.

The arrangement emerged as both firms renegotiated their partnership agreement, creating more flexibility for OpenAI to establish additional relationships with major technology companies including Amazon and Google.

The updated structure could strengthen OpenAI’s position with investors as the company reportedly explores a potential public offering. Executives are said to be considering a timeline that could place an IPO as early as the end of this year. Microsoft previously confirmed that revenue-sharing payments from OpenAI would continue through 2030 under the existing percentage terms, though subject to an overall cap.

Microsoft has invested approximately US$13 billion into OpenAI since 2019, helping accelerate the rise of ChatGPT and boosting demand for Microsoft’s Azure cloud business. At the same time, OpenAI is facing growing competition from rivals such as Anthropic while narrowing its focus toward core products like ChatGPT and Codex after reducing several experimental initiatives.

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