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The move reflects OpenAI’s decision to scale back internal changes that would have increased CEO Sam Altman’s control, keeping its nonprofit board in charge.
OpenAI is reportedly set to cut Microsoft’s revenue share from 20% to 10% by 2030, signaling a significant pivot in its AI revenue model and long-term business strategy, as per a report from The Information. This development reflects OpenAI’s evolving vision to strengthen its independence while maintaining a close collaboration with its key partner. The move comes even as Microsoft continues to hold exclusive rights to OpenAI’s APIs and intellectual property, a key advantage driving tools like Copilot and other AI-integrated Microsoft services through its Azure platform.
The adjustment in Microsoft's revenue share coincides with OpenAI’s internal decision to retain governance under its nonprofit board, rather than expand CEO Sam Altman's influence—an internal shift that further reinforces the organization’s mission-driven approach. This decision points to OpenAI’s desire to balance its profit-generating activities with ethical oversight and long-term sustainability, especially as the AI market trends become more competitive and investor-focused.
Despite investing a staggering $13.75 billion, Microsoft will continue to benefit from its early and exclusive OpenAI Microsoft deal, gaining first-mover advantages in the rapidly growing AI space. However, OpenAI’s plans to reduce Microsoft’s cut indicate a recalibration in its business model, possibly aimed at diversifying partnerships, maximizing its own margins, or preparing for future monetization strategies such as direct enterprise licensing or consumer-facing products.
In January, Microsoft also revised aspects of its agreement with OpenAI following the announcement of a $500 billion AI data centre initiative in partnership with Oracle and Japan’s SoftBank Group. The tech giant is said to be keen on maintaining access to OpenAI’s technology well beyond the current contract period.
The adjustment in Microsoft's revenue share coincides with OpenAI’s internal decision to retain governance under its nonprofit board, rather than expand CEO Sam Altman's influence—an internal shift that further reinforces the organization’s mission-driven approach. This decision points to OpenAI’s desire to balance its profit-generating activities with ethical oversight and long-term sustainability, especially as the AI market trends become more competitive and investor-focused.
Despite investing a staggering $13.75 billion, Microsoft will continue to benefit from its early and exclusive OpenAI Microsoft deal, gaining first-mover advantages in the rapidly growing AI space. However, OpenAI’s plans to reduce Microsoft’s cut indicate a recalibration in its business model, possibly aimed at diversifying partnerships, maximizing its own margins, or preparing for future monetization strategies such as direct enterprise licensing or consumer-facing products.
In January, Microsoft also revised aspects of its agreement with OpenAI following the announcement of a $500 billion AI data centre initiative in partnership with Oracle and Japan’s SoftBank Group. The tech giant is said to be keen on maintaining access to OpenAI’s technology well beyond the current contract period.
This recent shift underlines OpenAI's intention to redefine how value is shared in strategic AI collaborations, highlighting broader changes in how tech giants will structure alliances in the evolving AI economy.
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