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The Hindu
OpenAI, Microsoft agree to cap revenue-sharing at $38 billion
OpenAI and Microsoft have agreed to cap total revenue-sharing payments at $38 billion, according to a report by The Information. This renegotiation, which occurred last month, allows OpenAI to form new partnerships with cloud providers such as Amazon and Google. The cap could help OpenAI present a stronger long-term pitch to investors as it works toward a public offering, which some executives suggested could happen by the end of this year. Microsoft's early investment of $13 billion since 2019 helped fuel OpenAI's growth and boosted Microsoft's Azure cloud business. The revenue-sharing payments will continue through 2030 at the same percentage rate, but with the new overall cap. The agreement reflects the evolving relationship between the two companies as OpenAI seeks greater independence and diversification.
MonitorConfidence: MediumShort term horizon
Published 12 May 2026, 06:36 UTC1 min read
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Summary
TL;DR
- OpenAI and Microsoft capped revenue-sharing payments at $38 billion.
- Renegotiation allows OpenAI to partner with Amazon and Google.
- Cap could strengthen OpenAI's IPO narrative.
- Microsoft's $13 billion investment since 2019.
- Revenue-sharing payments continue at same percentage through 2030.
- The Information reported the news; Reuters could not verify.
- Some executives say IPO could happen by end of this year.
Interesting facts
- The cap is a total ceiling on revenue-sharing, not a change in percentage.