OpenAI Plans to Cut Microsoft Revenue Share After Restructuring: Report

OpenAI said the percentage of revenue shared with Microsoft would drop by at least half by the end of this decade.

Advertisement
By Reuters | Updated: 7 May 2025 16:37 IST
Highlights
  • The ChatGPT-maker has dialed back a significant restructuring plan
  • Sam Altman's power over the firm could get more limited
  • In January, Microsoft changed some key terms of a deal with OpenAI

OpenAI has agreed to share 20 percent of its revenue with Microsoft through 2030

Photo Credit: Reuters

OpenAI has told investors it will share a smaller fraction of revenue with major backer Microsoft as it moves ahead with its restructuring, The Information reported on Tuesday.

The ChatGPT-maker has dialed back a significant restructuring plan, with its nonprofit parent retaining control in a move that is likely to limit CEO Sam Altman's power over the firm.

In financial projections shared with investors, OpenAI said the percentage of revenue shared with Microsoft would drop by at least half by the end of this decade, the report said.

Advertisement

In an existing deal, OpenAI has agreed to share 20 percent of its revenue with Microsoft through 2030, the Information reported.

OpenAI told some potential and current investors that it would only share 10 percent of revenues with commercial partners including Microsoft by 2030, the report said, citing private documents, adding that Microsoft wants access to OpenAI's technology beyond 2030.

Advertisement

In January, Microsoft changed some key terms of a deal with OpenAI after its joint venture with Oracle and Japan's SoftBank Group to build up to $500 billion (roughly Rs. 42,31,976 crore) of new artificial intelligence data centers in the United States.

Microsoft has said it has "revenue sharing agreements that flow both ways" with OpenAI, with the key elements of the partnership remaining in place for the duration of the contract through 2030.

Advertisement

"We continue to work closely with Microsoft, and look forward to finalising the details of this recapitalisation in the near future," an OpenAI spokesperson told The Information.

Microsoft declined to comment on the report, while OpenAI did not immediately respond to a Reuters request for comment outside regular business hours.

Advertisement

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: OpenAI, Microsoft, ChatGPT
Advertisement

Related Stories

Popular Mobile Brands
  1. Moto G67 Power 5G India Launch Date, Key Features Announced
  2. The Family Man Season 3 OTT Release: Know When and Where to Watch it Online
  3. Amazon Fire TV Stick 4K Select Launched in India With Vega OS
  4. Apple Might Upgrade These MacBook, iPad Models With OLED Displays
  1. NASA’s X-59 Supersonic Jet Takes Historic First Flight, Paving Way for Quiet Supersonic Travel
  2. ASIC Clarifies Crypto Rules; Stablecoins, Tokenised Assets Flagged as Financial Products
  3. SpaceX Launches 28 Starlink Satellites, Lands Falcon 9 Booster in Pacific
  4. Idli Kadai, Starring Dhanush, Now Streaming on Netflix: What You Need to Know
  5. Ideabaaz Now Streaming on ZEE5: Everything You Need to Know
  6. Grey’s Anatomy Season 22 OTT Release: Know Where to Watch it Online?
  7. Bad Girl OTT Release Date: When and Where to Watch Tamil Drama Online?
  8. Adobe Partners With Google Cloud to Integrate Frontier AI Models Across Its Platforms
  9. Vivo X300, Vivo X300 Pro Price and Key Specifications Leaked Ahead of Global Launch
  10. OnePlus 15 India Launch Date Announced; to Debut as First Snapdragon 8 Elite Gen 5 Phone in India
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.