OpenAI Restructures: Nonprofit Control & Reduced Microsoft Revenue Share Amid AI Industry Surge

May 7, 2025
OpenAI Restructures: Nonprofit Control & Reduced Microsoft Revenue Share Amid AI Industry Surge
  • Microsoft has confirmed that its revenue-sharing agreements with OpenAI are reciprocal, ensuring that key elements of their partnership will remain intact through 2030.

  • As part of this transition, Microsoft has withdrawn support for additional training of OpenAI's ChatGPT, impacting two major data center deals.

  • However, OpenAI is reportedly planning to reduce the revenue share it allocates to Microsoft as part of a broader restructuring effort.

  • Discussions between OpenAI and Microsoft are ongoing to finalize the specifics of this restructuring, but neither company has commented further on the changes.

  • This decision is largely influenced by the rapidly evolving artificial intelligence industry, which is experiencing significant growth.

  • OpenAI's CEO recently announced that the organization will not transition into a fully for-profit entity, maintaining control over its for-profit division.

  • These changes may influence future collaborations between OpenAI and Microsoft, particularly in areas like AI development and cloud services.

  • By reducing the revenue share to Microsoft, OpenAI aims to retain a larger portion of its earnings, positioning itself for future growth.

  • In conjunction with these changes, OpenAI is planning a $40 billion funding round led by SoftBank, which could elevate its valuation to around $300 billion.

  • As part of its restructuring, OpenAI is moving towards establishing its for-profit division as a Public Benefit Corporation while remaining under the oversight of its nonprofit arm.

  • The restructuring is expected to limit the influence of OpenAI's CEO, Sam Altman, as the nonprofit parent retains control over the organization.

  • OpenAI's recent announcement on May 5, 2025, reflects a revision of its corporate plan to maintain nonprofit oversight of its for-profit operations.

Summary based on 13 sources


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