Core Viewpoint - OpenAI and Microsoft have reached a non-binding memorandum of understanding regarding the next phase of their collaboration, indicating ongoing negotiations on contract terms [1][3] Group 1: Revenue Sharing and Financial Implications - OpenAI has informed some shareholders that the revenue share given to Microsoft will significantly decrease in the coming years, from an initial 20% until 2030 to an expected 8% by the end of the century, potentially allowing OpenAI to retain over $50 billion in additional revenue [3] - It remains unclear whether the non-binding agreement includes modifications to the revenue-sharing plan, with some OpenAI executives seeking to exclude certain unreleased products from the revenue-sharing agreement [3] Group 2: Cloud Services and Competitive Dynamics - OpenAI is currently negotiating the scale of its spending on Microsoft cloud services, with previous estimates suggesting a spending of $135 billion by 2030, while Oracle has reportedly secured a $300 billion order from OpenAI [4] - Microsoft shareholders are questioning why OpenAI is placing larger orders with Oracle compared to Microsoft Azure, despite Microsoft being a key stakeholder in OpenAI [5] Group 3: Ownership Structure and Governance - The terms regarding equity distribution have reportedly been largely determined, with OpenAI's non-profit parent company and Microsoft each expected to hold about one-third of the new company's shares, although Microsoft will not receive a board seat [5]

Core Viewpoint - OpenAI is seeking to retain a larger share of its revenue by reducing the revenue percentage shared with Microsoft, indicating a shift in their partnership dynamics [4][6]. Group 1: Partnership Dynamics - OpenAI and Microsoft have announced a non-binding memorandum of understanding regarding the next phase of their collaboration, with ongoing negotiations on contract terms [1]. - Discussions about transforming OpenAI into a public benefit corporation have been ongoing for at least six months, influenced by Oracle's recent activities [3]. Group 2: Revenue Sharing Changes - OpenAI has informed some shareholders that the revenue share given to Microsoft will significantly decrease, from an initial 20% to an expected 8% by the end of the century, potentially allowing OpenAI to retain over $50 billion in revenue [4]. - It remains unclear if the new non-binding agreement includes modifications to the revenue-sharing plan [4]. Group 3: AGI Clause Negotiations - Negotiations are also taking place regarding the AGI clause, which currently stipulates that Microsoft would lose exclusive access to OpenAI's technology once it reaches AGI level [4]. Group 4: Cloud Spending Negotiations - OpenAI is negotiating the scale of its spending on Microsoft cloud services, with reports indicating that OpenAI has placed a $300 billion order with Oracle, significantly exceeding its projected $135 billion spending on Microsoft Azure by 2030 [5]. Group 5: Shareholder Expectations - Microsoft shareholders are seeking clarity on why OpenAI is placing larger orders with Oracle compared to Microsoft Azure, despite Microsoft's key stake in OpenAI [6]. - The equity distribution terms have reportedly been largely settled, with OpenAI's non-profit parent company and Microsoft each receiving about one-third of the new company's shares, while Microsoft will not have board representation [6].