Yazılar

OpenAI to Halve Revenue Share with Microsoft Amid Restructuring, Report Says

/in /tarafından

OpenAI plans to significantly reduce the share of its revenue allocated to Microsoft by the end of the decade, as part of its ongoing corporate restructuring, according to a report by The Information on Tuesday. The AI firm reportedly informed investors that its revenue-sharing deal with Microsoft—currently 20% through 2030—could fall to 10% or less over the next several years.

The shift comes amid broader changes at OpenAI, which recently abandoned plans for a full conversion into a public benefit corporation (PBC) and reaffirmed nonprofit control, limiting CEO Sam Altman’s power while trying to balance mission-driven governance with commercial scalability.

The financial update shared with investors suggests a future where OpenAI is less dependent on Microsoft while still maintaining a collaborative relationship. In response to the report, OpenAI noted it is “finalizing the details of this recapitalization”, and said it continues to work closely with Microsoft. However, Microsoft declined to comment.

In January, Microsoft adjusted key terms of its deal with OpenAI, following its joint venture with Oracle and SoftBank to invest up to $500 billion in U.S.-based AI data centers—a move that signaled deeper integration of AI infrastructure beyond OpenAI’s models alone.

The current OpenAI–Microsoft partnership includes reciprocal revenue sharing agreements, access to OpenAI’s models on Microsoft’s Azure platform, and embedded use of ChatGPT within Microsoft’s enterprise software like Office and Azure AI services.

Microsoft, which has invested over $13 billion in OpenAI, is believed to be negotiating for continued access to OpenAI’s technology post-2030, as competition intensifies in the global AI race.

OpenAI Plans Transition to Public Benefit Corporation: What It Means

/in /tarafından

OpenAI announced on Friday that it plans to transition its for-profit arm into a Delaware public benefit corporation (PBC), aiming to raise capital while staying competitive in the fast-paced and costly AI race against companies like Google. This shift aims to create a more investor-friendly structure while maintaining OpenAI’s commitment to supporting charitable initiatives.

What is a Public Benefit Corporation (PBC)?

A PBC is a for-profit entity that is legally obligated to pursue one or more public benefits, such as social or environmental goals, alongside its financial objectives. Delaware introduced PBCs in 2013, and as of December 2023, 19 publicly traded PBCs exist.

OpenAI’s current structure is described as a for-profit entity controlled by a non-profit organization, with capped profits for investors and employees. Under the new structure, the non-profit will own shares in the for-profit arm, which will continue to fund the non-profit’s charitable mission, focusing on areas like healthcare, education, and science.

Key Differences Between PBCs and Other Corporate Structures

While both PBCs and traditional corporations are for-profit, PBCs must legally pursue public benefits. Unlike non-profits, which reinvest profits into their mission and are tax-exempt, PBCs are not eligible for special tax exemptions. However, PBCs must report on their progress towards their goals, with shareholders holding significant sway over the company’s alignment with its mission.

Limitations of PBCs

Choosing the PBC structure doesn’t guarantee that a company will prioritize its social mission over profit. While the law requires the board to balance profit-making with its mission, the law does not enforce the mission’s prioritization. Critics argue that publicly traded PBCs may be more vulnerable to takeovers since their public benefit goals could be seen as conflicting with profit-maximizing interests.

Other Companies with the PBC Structure

Rivals such as Anthropic and Elon Musk’s xAI have adopted the PBC structure, as well as other companies like Allbirds, Kickstarter, Patagonia, and Warby Parker. These companies blend social or environmental goals with their business models to appeal to socially-conscious consumers and investors.