Archive · 2 Jun 2025
OpenAI to Reduce Microsoft Revenue Share, Report Says
Imagine OpenAI, the company behind the clever AI that writes stories and answers questions, is like a business.
They've been sharing some of their money with Microsoft, a big tech company that helps them out.
Right now, for every dollar OpenAI makes, they give Microsoft 20 cents.
But OpenAI is changing things up!
They told investors they plan to give Microsoft only 10 cents for every dollar they make by the end of the 2030s.
This means OpenAI will keep more of their money.
Microsoft, however, still wants to keep using OpenAI's special AI tools, even after the current deal ends.
It's like partners figuring out how to share the profits.
OpenAI plans to reduce Microsoft's revenue share.
The reduction will be by at least half by the end of this decade.
Currently, OpenAI shares 20% of its revenue with Microsoft.
OpenAI shared the new plan with investors, aiming for a 10% revenue share by 2030.
Microsoft wants access to OpenAI's technology beyond 2030.
- Who
- OpenAI and Microsoft.
- What
- OpenAI plans to reduce its revenue share with Microsoft.
- When
- Reported on Tuesday.
- Where
- Details were shared with investors.
- Why
- The reason for the change is not explicitly mentioned in the articles.
Microsoft's Perspective
OpenAI's Perspective
Revenue Sharing Agreement
Microsoft's Perspective
Microsoft has 'revenue sharing agreements that flow both ways' with OpenAI, and the partnership's key elements remain through 2030.
OpenAI's Perspective
OpenAI is decreasing Microsoft's revenue share by half by 2030.
- Company
- OpenAI
- Partner
- Microsoft
- Current Revenue Share
- 20%
- Planned Revenue Share by 2030
- 10%
- Timeline for Reduction
- End of the Decade