Microsoft (MSFT) and OpenAI (OPENAI) have reportedly renegotiated the details around their revenue-sharing plan, which saves the Sam Altman-led startup up to $97B in projected payments but also allows Microsoft to be paid sooner.
Under the new deal, OpenAI has agreed Newsletters for Every Investor Get daily, sector-specific newsletters packed with expert insights, fresh ideas, and new opportunities
Subscribe to Newsletters To ensure this doesnât happen in the future, please enable Javascript and cookies in your browser. If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.
Entering text into the input field will update the search result below Entering text into the input field will update the search result below Quick Insights The new agreement ensures Microsoft no longer shares Azure-based OpenAI model revenue with OpenAI, removing a financial drag and improving Microsoft’s AI monetization related to its cloud offerings. OpenAI benefits from a $38B cap on revenue sharing, avoiding up to $97B in extra payments; however, OpenAI must make higher short-term payments to Microsoft without deferred payment options. Microsoft secures structural advantages, including locked-in IP rights, reduced exclusivity, and exposure to OpenAI growth, while reducing dependency on OpenAI’s models for its AI strategy diversification