OpenAI to Reduce Microsoft’s Share of Its Future Revenue

OpenAI has notified investors of a strategic change that will see Microsoft receive a smaller portion of its revenue in the years ahead, signaling a shift in their partnership structure.

According to reports, OpenAI plans to cut Microsoft’s share of its revenue from the current 20% to just 10% by the end of the decade. This adjustment comes as OpenAI abandons its earlier ambition to restructure into a for-profit company. Instead, the AI research firm will continue to operate under its nonprofit governance model, with its for-profit arm now transitioning into a Public Benefit Corporation (PBC). This setup allows OpenAI to take on investors while maintaining its mission-first priorities under nonprofit board oversight.

Microsoft, which has invested around $13 billion in OpenAI since 2019, remains a key partner. Despite the expected revenue shift, the tech giant will continue to provide critical infrastructure, cloud services, and support for OpenAI’s ongoing development. Microsoft has confirmed that the core terms of its agreement with OpenAI will remain in place through 2030.

The decision to scale back Microsoft’s revenue share and retain nonprofit control reflects OpenAI’s commitment to balancing innovation, funding, and its long-term vision for safe and beneficial AI.