OpenAI to reduce revenue share with Microsoft, projections suggest

Company plans to retain $50 billion more in revenue by the end of the decade


OpenAI has projected that by the end of the decade, it will share approximately 8% of its revenue with commercial partner Microsoft, down from the current 20%, according to a report by The Information published on Friday. This change would result in OpenAI retaining over $50 billion in additional revenue, although it remains unclear whether this figure refers to an accumulative or annual amount.

Both OpenAI and Microsoft did not immediately respond to Reuters’ requests for comment. The two companies are also reportedly in discussions regarding how much OpenAI will need to pay Microsoft to rent servers, according to a source familiar with the negotiations.

In related news, Microsoft and OpenAI announced on Thursday that they have signed a non-binding agreement to revise the terms of their relationship. This deal would allow OpenAI to restructure itself into a for-profit entity. Under the existing arrangement, OpenAI’s nonprofit arm is expected to receive more than $100 billion—about 20% of the $500 billion valuation it seeks in private markets—making it one of the most well-funded nonprofit organizations globally.

Monitoring Desk
Monitoring Desk
Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

CCP fines Aisha Steel Mills Rs648 million and International Steels Rs914...

Companies found guilty of cartelization in flat steel sector; penalties equal 1% of 2021–22 turnover, operations spanned over three years