OpenAI plans to cut the share of revenue it pays Microsoft by half before 2030, according to internal projections cited by Reuters via The Information. The current agreement gives Microsoft 20% of revenue through the end of the decade. OpenAI reportedly told investors that the figure will fall to 10% under a recapitalization plan now in progress. An OpenAI spokesperson said the company continues to work closely with Microsoft and expects to finalize new terms soon. The development follows the nonprofit parent’s decision to retain control of OpenAI, as well as Microsoft’s recent revision of its agreement after Oracle and SoftBank proposed a joint AI data center venture. Microsoft maintains that core elements of its OpenAI partnership remain intact through 2030.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02OpenAI plans to cut the share of revenue and pays Microsoft by half before 2030,
00:06according to internal projections cited by Reuters via the information.
00:10Current agreement gives Microsoft 20% of revenue through the end of the decade.
00:14OpenAI reportedly told investors that the figure will fall to 10% under a recapitalization plan
00:19now in progress. An OpenAI spokesperson said the company continues to work closely
00:23with Microsoft and expect to finalize new terms soon. Velvet follows the non-profit
00:28of parents' decision to retain control of OpenAI, as well as Microsoft's recent revision
00:32of its agreement after Oracle and SoftBank proposed a joint AI data center venture.
00:37Microsoft maintains the core elements of its OpenAI partnership for main attack through 2030.
00:42For all things money, visit Benzinga.com slash GSTV.