OpenAI to Reduce Revenue Share with Microsoft Amid Restructuring

OpenAI plans to cut the percentage of revenue it shares with Microsoft (NASDAQ:MSFT) as part of its evolving business strategy, according to a report by The Information. The ChatGPT creator has scaled back a significant restructuring plan, allowing its nonprofit parent to retain control—effectively limiting CEO Sam Altman’s influence and consolidating decision-making.

In financial projections disclosed to investors, OpenAI said it intends to reduce Microsoft’s share of revenue by at least half by 2030. Currently, Microsoft receives 20% of OpenAI’s revenue through an existing agreement, but this figure could drop to just 10% by the end of the decade. The shift reflects OpenAI’s growing independence as it seeks to solidify its position in the competitive artificial intelligence sector while renegotiating key terms of its strategic partnerships.

Microsoft, which has invested billions into OpenAI and integrates its models into products like Azure and Copilot, is reportedly seeking continued access to OpenAI’s technology beyond 2030. Earlier this year, Microsoft also revised elements of its deal with OpenAI in connection with a $500 billion AI data center initiative alongside Oracle (NYSE:ORCL) and Japan’s SoftBank (TYO:9984).

While Microsoft maintains that its revenue-sharing agreement with OpenAI remains intact through 2030, both companies are said to be finalizing details of a broader recapitalization plan. “We continue to work closely with Microsoft,” an OpenAI spokesperson told The Information, signaling ongoing collaboration despite the reduced revenue split.

Neither OpenAI nor Microsoft responded to Reuters' request for comment at the time of reporting.

This development marks a pivotal moment in the evolving relationship between two AI powerhouses, as OpenAI repositions itself for long-term growth and operational autonomy.