OpenAI plans to cut Microsoft’s share of revenue by 2030
By ForGeeks OpenAI expects to reduce the share of revenue paid to Microsoft to 10% by the end of the decade, The Information reported, citing internal company financial documents.
Today, OpenAI is required to give 20 percent of its revenue to Microsoft, which remains its main investor and technology partner. However, the company has already notified investors that it intends to cut that share in half to 10% by 2030, including contributions to other business partners as well.
OpenAI is currently obligated to give 20% of its revenue to Microsoft, which remains its main investor and technology partner.
Microsoft has invested tens of billions of dollars in OpenAI and has a contract that runs through the end of the decade. In addition to a share of revenue, the agreement gives Microsoft exclusive access to OpenAI’s AI APIs through the Azure cloud platform, as well as rights to integrate OpenAI technology into its own products.
Microsoft has invested tens of billions of dollars in OpenAI and has signed a contract that lasts for a decade.
Amid these changes, OpenAI has announced restructuring plans – its for-profit division may become a public benefit corporation (PBC) while retaining control from a nonprofit organization. According to Bloomberg, Microsoft has not yet approved the new structure as it seeks to safeguard its investment.
According to Bloomberg, Microsoft has not yet approved the new structure as it seeks to secure its investment.
The story OpenAI plans to cut Microsoft’s revenue share by 2030 was first published on ITZine.ru.
