OpenAI to Slash Microsoft’s Revenue Share Amid Major Restructuring

According to various media reports, OpenAI, the company behind ChatGPT, has informed investors that it intends to reduce the revenue share it gives to Microsoft, its biggest sponsor, by 2030. The announcement of OpenAI's intentions to lower Microsoft's income share follows the corporation's decision to withdraw its proposal to acquire the startup from its nonprofit division.

OpenAI's current proposal calls for transforming its for-profit division into a distinct public benefit company (PBC), although the non-profit would still have significant ownership and influence over the business.

 The new strategy aims to maintain the non-profit objective while enabling the AI startup to obtain more capital to remain competitive in the AI race. Microsoft had not approved OpenAI's new restructuring plans, according to a media article shortly after the plan was unveiled.

 The Windows manufacturer wanted to make sure the modifications would safeguard its $13.75 billion investment.

Bringing Down Revenue Sharing From 20% to 10%

According to reports, OpenAI committed to share 20% of its earnings until 2030 as part of its current deal. By the end of this decade, it now hopes to cut it in half and lower Microsoft's revenue share to 10%. Microsoft wants access to OpenAI's technologies after 2030.

"We continue to work closely with Microsoft and look forward to finalising the details of this recapitalisation in the near future," an OpenAI representative told a media outlet. Notably, after OpenAI launched Project Stargate in January, a joint venture with SoftBank and Oracle of Japan to construct a $500 billion AI data centre in the US, Microsoft altered certain important aspects of its agreement with the ChatGPT provider.

 Notably, after OpenAI announced Project Stargate in January—a joint venture with SoftBank of Japan and Oracle to construct a $500 billion AI data centre in the US—Microsoft modified certain important provisions of its agreement with OpenAI.

Chinese DeepSeek a Major Threat to OpenAI

Early in 2025, China's DeepSeek stunned Western markets by creating a comparable AI model at a fraction of the price, delivering OpenAI a serious blow.

To keep its dominance in the AI market, the Sam Altman-led company has now introduced a number of AI solutions.

Even though Google's Gemini 2.5 Pro presently leads the benchmarks, ChatGPT is still one of the most widely used programs, especially in light of the recent viral fad for Ghibli and action figure-style graphics that its new image generator sparked.

Additionally, OpenAI recently pledged to increase its use of Azure services for research and training. Microsoft now has the first say in adding capacity under a new deal, but OpenAI is free to construct more infrastructure.