OpenAI anticipates paying a smaller percentage of its revenue to its investor and close partner Microsoft by 2030, according to financial documents reported by The Information.
This update follows OpenAI’s recent shift in strategy, opting for a new plan that transforms its for-profit arm into a public benefit corporation (PBC) while remaining under the control of its nonprofit division.
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Currently, OpenAI shares 20% of its revenue with Microsoft. However, the company has informed investors that it expects this share to decrease to 10% by the end of the decade.
Microsoft has invested tens of billions in OpenAI and maintains a contract with the AI company until 2030, which includes revenue sharing and rights to OpenAI’s intellectual property within its AI products, as well as exclusivity on OpenAI’s APIs on Azure.
As of now, Microsoft has not approved OpenAI’s proposed corporate structure, as it seeks assurance that the new arrangement will safeguard its significant investment.
Both OpenAI and Microsoft did not immediately respond to requests for comment.
SOURCE: TECH CRUNCH
