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OpenAI & Microsoft Cap Deal at $38B
12 May
Summary
- OpenAI and Microsoft agreed to a $38 billion revenue-sharing cap.
- This renegotiation allows OpenAI to explore new partnerships.
- The cap could strengthen OpenAI's pitch for a potential IPO.
OpenAI and its major partner Microsoft have reportedly agreed to cap their total revenue-sharing payments at $38 billion. This significant renegotiation of their contract occurred last month, paving the way for OpenAI to establish new partnerships with other major tech firms, including Amazon and Google.
The implementation of a payment cap is expected to bolster OpenAI's long-term investment proposition. This strategic move comes as the artificial intelligence pioneer is reportedly preparing for a public offering, with some executives suggesting it could occur as early as the end of 2026.
Microsoft's substantial investment, totaling $13 billion since 2019, has been instrumental in OpenAI's growth and its status as an AI leader. These revenue-sharing payments are projected to continue through 2030 under the same percentage structure, but now with an overall cap in place.
