OpenAI Seeks to Redefine Microsoft Partnership Amid AI Industry Shifts

In a strategic move that could reshape one of artificial intelligence’s most consequential corporate alliances, OpenAI is planning to significantly reduce the revenue share it pays to Microsoft by 2030, according to reports from multiple sources familiar with the matter.

The AI research company behind ChatGPT is looking to cut Microsoft’s share of its revenue from approximately 49% today to roughly 25% by the end of the decade, according to a report published by The Information. This adjustment would fundamentally alter the financial dynamics of a partnership that has been central to both companies’ AI strategies.

“OpenAI has been in active discussions with Microsoft about restructuring their partnership,” a person familiar with the negotiations told The Information. The planned reduction would occur gradually over the next five years as part of a broader restructuring of their relationship.

Microsoft has invested approximately $13 billion in OpenAI since 2019, providing crucial computing resources and financial backing that helped the AI lab develop its groundbreaking large language models. In return, Microsoft secured exclusive access to OpenAI’s technology for its cloud services and products.

According to Reuters, the proposed changes come as OpenAI has been exploring ways to raise additional capital at a valuation that could exceed $100 billion. The company has been in discussions with investors about a potential share sale that would reduce Microsoft’s ownership stake, though Microsoft would remain a significant shareholder.

The relationship between the two companies has evolved considerably since OpenAI’s founding as a nonprofit in 2015. After restructuring to include a for-profit arm, OpenAI signed its first commercial deal with Microsoft in 2019, followed by expanded partnerships in subsequent years that deepened their technological and financial ties.

Industry analysts suggest the move reflects OpenAI’s growing confidence in its ability to operate more independently as its revenue streams mature. TechCrunch reports that OpenAI expects to generate approximately $3.7 billion in revenue this year, with projections reaching $11.6 billion by 2025.

“This renegotiation indicates OpenAI’s desire to establish more financial autonomy while maintaining access to Microsoft’s cloud infrastructure,” said an industry analyst quoted by PYMNTS.

The potential restructuring comes during a period of notable tension between the companies. Last November, OpenAI experienced significant internal turmoil when CEO Sam Altman was briefly ousted by the board before being reinstated days later—a crisis during which Microsoft offered to hire OpenAI employees who wanted to leave.

According to MSN Money, the partnership has been strained at times, with one source describing the relationship as “not everything is okay between Microsoft and OpenAI.”

Microsoft CEO Satya Nadella has publicly emphasized the importance of the OpenAI relationship to Microsoft’s AI strategy, having integrated OpenAI’s technology across numerous Microsoft products, including its Copilot AI assistant.

Neither OpenAI nor Microsoft has officially commented on the reported plans to adjust their revenue-sharing arrangement. As Investing.com notes, the discussions remain ongoing, and the final terms could still change.

The outcome of these negotiations will likely have far-reaching implications for the competitive landscape in artificial intelligence, potentially influencing how other major technology companies structure their AI partnerships and investments in the years ahead.