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OpenAI plans to pay lower share of revenue to Microsoft by 2030

ChatGPT maker OpenAI currently has an agreement to share 20% of its top line with Microsoft. Microsoft is an investor and close partner of OpenAI, which has invested tens of billions in OpenAI, and both companies have a contract until 2030 that includes revenue sharing from both sides.

This deal also gives Microsoft rights to OpenAI IP within its AI products, as well as exclusivity on OpenAI’s API’s on Azure. Well, OpenAI seems to have changed its mind, as it is revealed that the company plans to pay a lower share of revenue to Microsoft. Recently, OpenAI announced to change a major restructuring plan to pursue a new plan that would see its for-profit arm becoming a Public Benefit Corporation (PBC) but continue to be controlled by its nonprofit division.

And now, after this change of plan, OpenAI has told investors it expects to share 10% of revenue with its business partners, including Microsoft, by the end of this decade (2030). OpenAI is yet to receive clearance from Microsoft, which is its major stakeholder, regarding the proposed corporate structure. Reportedly, Microsoft is still actively negotiating the details of OpenAI’s proposal.

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