OpenAI and Microsoft Reportedly Cap Revenue-Sharing Deal at $38 Billion

OpenAI and Microsoft Reportedly Cap Revenue-Sharing Deal at $38 Billion

OpenAI and Microsoft have reportedly agreed to place a $38 billion cap on total revenue-sharing payments between the two companies, according to a report from The Information citing a source familiar with the arrangement. The reported agreement comes as both companies continue renegotiating parts of their partnership, potentially giving OpenAI more flexibility to expand collaborations with other major tech firms such as Amazon and Google.

The new cap could strengthen OpenAI’s long-term position with investors as the company reportedly explores plans for a future public offering, with some executives believing an IPO could happen as early as the end of this year.

Reuters noted that it could not independently verify the report, while both OpenAI and Microsoft declined to comment outside regular business hours.

Microsoft previously stated in April that revenue-sharing payments from OpenAI would continue through 2030 under the same percentage structure agreed upon earlier, although those payments would now reportedly remain subject to an overall cap.

Microsoft has invested approximately $13 billion into OpenAI since 2019, a partnership widely credited with accelerating OpenAI’s rise as one of the leading AI companies globally. The collaboration has also significantly boosted Microsoft’s Azure cloud computing business by integrating OpenAI technologies into Microsoft’s enterprise products and cloud services.

The reported restructuring signals a possible shift in OpenAI’s strategy as it seeks greater operational flexibility while continuing to expand its influence across the rapidly growing AI industry.