OpenAI To Reduce Portion Of Revenue Shared With Microsoft

OpenAI will reportedly reduce the portion of revenue it shares with its investor and close partner Microsoft by 2030. 

The news comes after OpenAI this week changed its major restructuring plan, opting for a new approach that will transform the for-profit company into a public benefit corporation (PBC) while still being controlled by its nonprofit division, as reported by Tech Crunch on Wednesday. 

Currently, OpenAI has a deal to share 20 percent of its total revenue with Microsoft. However, the artificial intelligence (AI) company has told investors that it expects to only share 10 percent of revenue with its business partners, including Microsoft, by the end of the decade, according to the report. 

Microsoft has invested tens of billions of dollars in OpenAI, and the two companies are currently under contract through 2030 that includes a revenue-sharing scheme for both parties. The deal also gives Microsoft the rights to OpenAI's intellectual property (IP) for use in its AI products, as well as exclusivity over OpenAI's APIs on the Azure platform. 

Microsoft has yet to approve the new corporate structure proposed by OpenAI on Monday (5/5), as the tech giant reportedly wants to ensure that the new structure still protects its multi-billion dollar investment. 

Tag: Microsoft By 2030 OpenAI PBC Public Benefit Corporation