OpenAI is planning a significant change in its long-standing partnership with Microsoft. The current agreement, which gives Microsoft and its partners around 20% of OpenAI’s revenue, is now set to be scaled down. Reports suggest that by the end of the decade, that figure could drop to just 8%, a massive reduction in shared profits.
The shift comes amid broader restructuring efforts inside OpenAI. Beyond revenue sharing, the company is also negotiating server rental fees with Microsoft, trying to balance its dependence on Microsoft’s infrastructure while seeking greater independence. The move highlights a push by OpenAI to ensure more control over its own growth and financial outcomes.
A non-binding deal is also being discussed that would allow OpenAI to restructure into a for-profit or public-benefit corporation. This restructuring could value the company around $500 billion, with OpenAI’s nonprofit parent retaining an equity stake. Such a move would mark a turning point in OpenAI’s corporate identity and global ambitions.
For Microsoft, the reduced revenue share could mean less direct profit from OpenAI’s booming business. However, Microsoft still retains strategic advantages as the core infrastructure provider. The balance of power between the two companies is evolving, and the changes ahead could reshape not only their partnership but the competitive landscape of AI itself.
#OpenAI #Microsoft #AI #TechNews #Partnership #Business #Innovation