OpenAI to cut revenue share of Microsoft and partners: report

OpenAI is planning to dramatically reduce the percentage of revenue it shares with Microsoft and partners, cutting from 20% to just 8% by the end of the decade, according to a report by The Information.

This substantial reduction would allow OpenAI to retain an estimated $50 billion in additional revenue over the period. The exact nature of this figure - whether cumulative or annual - remains unclear.

As per The Insider, this shift forms part of a broader realignment of the relationship between the two companies. They recently announced a non-binding agreement that would permit OpenAI to restructure as a for-profit company. The firms are also negotiating new terms for OpenAI's use of Microsoft's cloud servers.

Under the current arrangement, OpenAI's nonprofit arm is slated to receive more than $100 billion, based on the company's sought-after $500 billion valuation in private markets, adds the report. Neither company has publicly commented on the reported changes at the time of writing.