OpenAI to share 8% of its revenue with Microsoft, partners, The Information reports
Group 1 - OpenAI projects to reduce revenue sharing with commercial partners, specifically Microsoft, from 20% to 8% by the end of the decade, potentially retaining over $50 billion in additional revenue [1] - OpenAI and Microsoft are negotiating server rental costs, with a non-binding deal signed for new relationship terms that would allow OpenAI to transition into a for-profit entity [2] - OpenAI's nonprofit arm is expected to receive more than $100 billion, which represents about 20% of the $500 billion valuation it is pursuing in private markets, making it one of the most well-funded nonprofit operations globally [3]