OpenAI Plans to Cut Partner Revenue Share to 8% by 2030

OpenAI is planning to reduce the revenue share it pays to Microsoft and other commercial partners from about 20% to roughly 8% by the end of the decade, a move that could allow it to retain over $50 billion in additional revenue. This adjustment is part of a broader restructuring as OpenAI transitions toward a for-profit status, with the company's nonprofit arm potentially receiving a $100 billion equity stake in the new for-profit entity. Negotiations between OpenAI and Microsoft also include terms for the continued use of Microsoft's cloud servers, which power OpenAI's AI models like GPT-4. The shift has attracted regulatory scrutiny, with investigations by California and Delaware attorneys general concerned about preserving OpenAI's original nonprofit safety mission and charitable assets. Despite the reduced revenue share, Microsoft remains a critical partner providing cloud infrastructure, although reports suggest there have been tense discussions over the new agreements. Overall, this realignment reflects OpenAI's growing financial independence and ambitions to expand its AI research and operations.