ISLAMABAD: OpenAI is expected to share 8% of its revenue with Microsoft, down from 20% by the end of the decade, according to Reuters.
The change could leave OpenAI with more than $50 billion in additional revenue over time, though it was not clear whether the estimate was annual or cumulative.
Microsoft and OpenAI are also negotiating terms for server rental costs, a person familiar with the talks told The Information. Neither company immediately responded to Reuters requests for comment.
This report follows confirmation that the two firms signed a nonbinding agreement Thursday to revise their partnership, potentially allowing OpenAI to restructure into a for-profit entity.
Under existing terms, OpenAI’s nonprofit arm is expected to receive more than $100 billion — about 20% of the $500 billion valuation the company is targeting in private markets — according to a memo from Bret Taylor, chairman of OpenAI’s nonprofit board.
The evolving financial relationship underscores Microsoft’s pivotal role in OpenAI’s operations, particularly in providing cloud infrastructure, while highlighting the artificial intelligence company’s push for greater independence as it scales up.
