Microsoft ends revenue sharing agreement with OpenAI

Microsoft is stopping revenue payments to ChatGPT creator OpenAI while maintaining its role as the startup's primary cloud computing provider

Justin Tomlinson

Editor-in-Chief, Mora Discover

3 sources
Microsoft ends revenue sharing agreement with OpenAI

Microsoft announced on Monday that it will no longer pay a share of its revenue to OpenAI, the creator of the ChatGPT artificial intelligence platform. This decision, which was shared in San Francisco, represents a fresh step by the technology giant to loosen its alliance with the startup. The move signals a change in the financial structure of their partnership, which has been a key part of their collaborative efforts in the AI sector.[1][2]

While the revenue-sharing agreement is being cut, the two companies stated that Microsoft remains the primary cloud computing partner for OpenAI. This technical collaboration continues to be a fundamental part of their relationship, as Microsoft provides the cloud infrastructure necessary for OpenAI's work. The shift in financial terms suggests an evolving strategy as both companies navigate their roles in the developing artificial intelligence market.[1][2]

The adjustment to the revenue share is part of an effort to redefine the boundaries of the Microsoft and OpenAI alliance. By ending these payments, Microsoft is taking a step to modify the financial ties that have linked the two organizations. However, the confirmation of their continued cloud computing partnership indicates that while the financial alliance is loosening, the operational connection between the companies remains significant.[1][2]

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