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OpenAI to Gain $50 Billion From Cutting Revenue Share with Microsoft, Partners

OpenAI CEO Sam Altman. Photo by Getty,
By
Sri Muppidi
[email protected]Profile and archive
,
Aaron Holmes
[email protected]Profile and archive
and
Stephanie Palazzolo
[email protected]Profile and archive

As OpenAI irons out new terms of a partnership with Microsoft, it has told some shareholders that the percentage of revenue it will hand over to Microsoft will drop considerably in the coming years.

As part of their original partnership agreement, Microsoft is entitled to 20% of the startup’s revenue through 2030. But OpenAI has projected to share roughly 8% of its revenue with commercial partners—namely, Microsoft—by the end of the decade from just under 20% this year. The difference between those figures adds up to over $50 billion in additional revenue OpenAI would keep for itself through 2030, which it needs because it has projected record-breaking expenses for computing power before that year.

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