OpenAI, the artificial intelligence firm behind ChatGPT, has reportedly informed investors of plans to reduce the revenue share allocated to Microsoft, its largest backer. According to a report by The Information, OpenAI intends to cut Microsoft’s revenue share from 20% to 10% by 2030 as part of a broader restructuring of the company’s business model and governance.
The move signals a strategic shift as OpenAI dials back a significant internal restructuring plan. The company’s nonprofit parent, OpenAI Nonprofit, will continue to retain control over the firm, a decision that is expected to place limits on CEO Sam Altman’s influence. By keeping the nonprofit entity in charge, OpenAI appears committed to maintaining its founding mission and values, even as it expands its commercial ventures.
Currently, Microsoft has a deal to receive 20% of OpenAI’s revenues through 2030. The tech giant has invested over $13 billion in OpenAI and has deeply integrated OpenAI’s technologies into its own products, including Azure cloud services and Microsoft 365. However, the proposed revenue share reduction suggests OpenAI is seeking greater financial independence and a rebalanced relationship with Microsoft.
Private documents cited by The Information reveal that OpenAI has shared updated financial projections with both existing and potential investors. In these communications, the company outlined its plan to decrease the portion of revenue distributed to commercial partners like Microsoft, cutting it by at least half by the end of the decade.
Despite the planned reduction, Microsoft is reportedly interested in maintaining access to OpenAI’s cutting-edge AI technologies beyond 2030. The long-term partnership between the two companies could remain intact, albeit under revised terms that reflect OpenAI’s evolving strategic priorities.
The restructuring and shift in revenue distribution highlight OpenAI’s ambition to assert more control over its own commercial future. At the same time, the nonprofit parent’s continued oversight indicates a cautious approach to balancing profit motives with the company’s broader mission to ensure artificial general intelligence benefits all of humanity.
