Microsoft and OpenAI Cap Revenue-Sharing at $38 Billion
Microsoft and OpenAI have agreed to cap total revenue-sharing payments at $38 billion. This agreement comes after the two companies renegotiated their contract last month, allowing OpenAI to form new partnerships with companies like Amazon and Google.
The payment cap could help OpenAI present a stronger long-term pitch to investors as it works toward a public offering, which some executives said could take place by the end of this year. Microsoft's early investment in OpenAI has totaled $13 billion since 2019, helping pave the way for the AI pioneer's growth and powering Azure cloud-computing business.
Microsoft had previously stated that revenue-sharing payments from OpenAI would continue through 2030 at the same percentage agreed upon, subject to an overall cap. The exact terms of the agreement remain unclear, but the payment cap could provide a sense of financial stability for investors.