OpenAI and Microsoft have agreed to cap total revenue-sharing payments between the two companies at $38 billion as part of a renegotiated partnership agreement, according to a report by The Information.
The revised arrangement was reportedly finalised last month and is expected to support OpenAI’s long-term business strategy, including preparations for a potential public offering that could take place later this year.
The report said the updated agreement also creates flexibility for OpenAI to pursue additional partnerships with other technology companies, including Amazon and Google, alongside its existing relationship with Microsoft.
Microsoft had previously confirmed in April that revenue-sharing payments from OpenAI would continue through 2030 under the same percentage structure agreed earlier, subject to an overall cap. The Information reported that the cap has now been set at $38 billion.
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Microsoft has invested around $13 billion in OpenAI since 2019, backing the artificial intelligence company during its early growth phase. The partnership also strengthened Microsoft’s Azure cloud business through access to OpenAI’s models and AI technologies.
Court disclosures cited in the report showed that Microsoft had internally projected a potential return of $92 billion from its OpenAI investments. Microsoft chief executive Satya Nadella testified during court proceedings that the company’s early investment strategy “worked out well because we took the risk.”
OpenAI’s valuation has risen significantly in recent years, with recent reports estimating the company’s value at around $400 billion following secondary share sales and funding activity. Microsoft’s stake in the company was reportedly valued at approximately $135 billion as of October last year.
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The legal proceedings stem from a lawsuit filed by Elon Musk in 2024 against OpenAI, chief executive Sam Altman, president Greg Brockman and Microsoft. Musk alleged that OpenAI moved away from its original non-profit mission while transitioning toward a for-profit structure. OpenAI, Microsoft and the company’s executives have denied the allegations.
The renegotiated agreement marks another phase in the evolving relationship between the two companies, which have expanded their artificial intelligence ambitions while also competing in several areas of the AI market.
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First Published on May 12, 2026, 13:53:32 IST