Microsoft, OpenAI agree to limit revenue-sharing payments to $38B
What's the story
OpenAI and Microsoft have agreed to cap revenue-sharing payments at $38 billion, as per The Information. The development comes after a recent contract renegotiation between the two companies. The new agreement would allow OpenAI to seek partnerships with other tech giants like Amazon and Google. This payment cap could help OpenAI strengthen its investor pitch as it prepares for a potential public offering by the end of this year.
Investment impact
Microsoft's investment has fueled OpenAI's rise
Microsoft's investment of $13 billion since 2019 has been instrumental in OpenAI's growth as an AI leader. The funding has also boosted Microsoft's Azure cloud-computing business. In April, Microsoft had said that the revenue-sharing payments from OpenAI would continue through 2030 at the same percentage as previously agreed, but with an overall cap.