OpenAI, a leading artificial intelligence research organization, is undergoing significant restructuring that aims to reduce the portion of its revenue shared with Microsoft, its major investor and strategic partner. Currently, OpenAI allocates 20% of its revenue to Microsoft under an agreement set to last until 2030. However, recent financial projections indicate that this share may decrease to 10% by the end of the decade. ([reuters.com](https://www.reuters.com/business/openai-plans-slash-revenue-share-microsoft-information-reports-2025-05-07/?utm_source=openai))
This adjustment is part of a broader restructuring initiative within OpenAI. The organization has decided to scale back a significant restructuring plan, allowing its nonprofit parent entity to retain control. This move is expected to limit the authority of CEO Sam Altman over the firm. The decision to maintain nonprofit control comes after external pressures and criticisms regarding the potential shift to a for-profit model. ([ft.com](https://www.ft.com/content/687b0166-27c3-426e-abc0-bd449e71bcd6?utm_source=openai))
Microsoft has invested approximately $13 billion in OpenAI since 2019, demonstrating a strong commitment to advancing AI technologies. The partnership includes revenue-sharing agreements and grants Microsoft rights to OpenAI’s intellectual property within its AI products, as well as exclusivity on OpenAI’s APIs on Azure. Despite the proposed changes in revenue sharing, Microsoft has stated that the core elements of its partnership with OpenAI remain intact through 2030. ([reuters.com](https://www.reuters.com/business/openai-plans-slash-revenue-share-microsoft-information-reports-2025-05-07/?utm_source=openai))
OpenAI’s financial trajectory reflects both rapid growth and significant expenditures. The company is on track to generate approximately $3.4 billion in revenue this year, nearly doubling its revenue from the previous year. However, it is projected to incur a loss of about $5 billion in 2024, with losses potentially reaching as high as $14 billion by 2026. These figures highlight the steep costs associated with scaling advanced AI models amid increasing global demand for generative AI technologies. ([cointelegraph.com](https://cointelegraph.com/news/openai-losses-profit-projections-2029?utm_source=openai))
The restructuring and renegotiation of revenue-sharing terms are strategic efforts by OpenAI to balance its financial sustainability with its mission-driven goals. By reducing the revenue share allocated to Microsoft, OpenAI aims to retain more resources for research and development, ensuring continued innovation in the AI sector.
Microsoft’s response to these changes is crucial, given its substantial investment and interest in OpenAI’s technology. The tech giant is reportedly seeking continued access to OpenAI’s technology beyond the current agreement’s 2030 expiration. In January, Microsoft revised terms of its deal with OpenAI following a joint venture with Oracle and Japan’s SoftBank to potentially build $500 billion in AI data centers in the U.S. ([reuters.com](https://www.reuters.com/business/openai-plans-slash-revenue-share-microsoft-information-reports-2025-05-07/?utm_source=openai))
The evolving dynamics between OpenAI and Microsoft underscore the complexities of partnerships in the rapidly advancing field of artificial intelligence. As OpenAI navigates its restructuring and financial strategies, the outcomes will likely have significant implications for the broader AI industry and the future of AI development.
