Home News OpenAI to reduce Microsoft’s revenue cut from 20% to 8%

OpenAI to reduce Microsoft’s revenue cut from 20% to 8%

OpenAI, the leading artificial intelligence company, is making headlines after announcing a major overhaul of its partnership with Microsoft—one set to reshape the future of AI.

OpenAI plans to slash Microsoft’s revenue share from 20 percent to just 8 percent by 2030, allowing the firm to retain more than $50 billion in additional income over the next five years. The revised deal is part of a non-binding agreement paving the way for OpenAI’s transition from a nonprofit to a public benefit corporation—a crucial step toward a possible stock market listing.

Microsoft remains the largest backer, with over $13 billion invested since 2019—and continues to supply cloud infrastructure for OpenAI’s rapidly expanding user base of 700 million weekly active users and over 5 million paying customers. Despite lower revenue share, Microsoft’s overall equity stake could reach up to 30 percent in the restructured OpenAI.

This move gives OpenAI greater strategic independence and access to billions in new investment, while helping Microsoft secure a long-term technology partnership—even as OpenAI seeks wider collaborations and prepares for an eventual IPO. The changes also come amid regulatory scrutiny and industry debate around AI’s future direction and safety.

With OpenAI’s valuation soaring and the race for advanced AI heating up, these new terms could define how innovation and control are balanced within Big Tech. For more on this fast-moving story, stay tuned to TheMixPost—where technology, business, and global impact meet.