OpenAI to cap Microsoft revenue-sharing at $38 billion: Report

OpenAI and Microsoft agreed to cap total revenue-sharing payments at $38 billion, U.S. digital news outlet The Information reported on Monday, citing a person with knowledge of ‌the ⁠arrangement.

The development ⁠comes as OpenAI and Microsoft renegotiated a contract last month, making room for OpenAI to forge new partnerships with companies such as 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 as soon as the end of this year, according to the report.


Reuters could not immediately verify the report. OpenAI and Microsoft did not immediately respond to Reuters' requests for comment outside regular business hours.

Microsoft said ‌in April that revenue-sharing payments from OpenAI would continue through 2030, and that payments would ⁠be made at the same previously agreed percentage, subject to an overall cap.

Microsoft's early investment, totaling $13 billion since 2019, helped pave the way for OpenAI's rise as an AI pioneer and powered growth at the Windows maker's Azure cloud-computing business.