OpenAI, Microsoft Reportedly Cap Payments at $38 Billion in New Revenue Sharing Deal
In Focus
- Microsoft has invested approximately $13 billion in OpenAI since 2019
- The Windows maker was targeting a $92 billion return on its investment
- The new agreement paves the way for OpenAI to list publicly
OpenAI and Microsoft have reached a revenue sharing deal as the firms renegotiate their partnership. The two companies agreed to cap their revenue-sharing payments at $38 billion. The new agreement could pave the way for OpenAI to list publicly by the end of 2026.
Revenue Sharing Model Was Part of April Negotiations
The AI revenue sharing model is a culmination of negotiations held last month. The discussions allowed OpenAI to partner with other tech companies, including Amazon and Google. Amazon invested $50 billion in OpenAI in a recent round of funding in which the AI firm raised $110 billion.
A report by The Information shows that in April, 2026, Microsoft confirmed that the revenue-sharing arrangement will continue until 2030. The arrangement maintains the previously agreed structure but is subject to an overall cap. Microsoft has invested about $13 billion in OpenAI since 2019.
The Windows maker mostly backed the AI company during its early growth phase, helping the AI firm establish itself as a pioneer in AI technologies. The partnership included an exclusive OpenAI Microsoft Azure deal that strengthened the cloud business through access to AI models and technologies. The $38 billion cap will strengthen OpenAI’s pitch to investors as it works towards the 2026 IPO.
Microsoft Was Targeting A Much Higher Return
Although the OpenAI-Microsoft revenue sharing deal capped payments at $38 billion, Microsoft was targeting a $92 billion return from its initial investments in the AI developer. The Windows maker had included this figure in its planning documents in 2023.
The company also disclosed the amount during the Elon Musk case against OpenAI and Microsoft in Oakland California. During the trial, Microsoft CEO Satya Nadella said the investments “worked out well because we took the risk.” OpenAI’s valuation has risen to $852 billion since Microsoft’s initial investment.
By October 2025, Microsoft’s stake in the AI firm amounted to about $135 billion. Last year, Microsoft received a 27% stake in OpenAI as part of the company’s restructuring into a for-profit entity.
How Complex is the OpenAI-Microsoft Partnership?
While OpenAI’s partnership with Microsoft was straightforward at the beginning, the relationship between the two companies had become complicated over time. The companies have differed over the terms of their collaboration and acted more as competitors as their investments in AI products and services increase.
Recently, Microsoft considered legal action following OpenAI’s massive cloud deal with Amazon. The $50 billion agreement positioned Amazon Web Services as a key infrastructure partner for OpenAI’s upcoming “Frontier” platform.
Microsoft’s agreement with OpenAI had granted Azure significant rights to host and distribute OpenAI models. The conflict was based on the potential breach of contractual terms by the Amazon-OpenAI deal. The newly renegotiated agreement and the revenue $38 billion revenue cap reflect their latest attempt at redefining the boundaries in a partnership that continues to shape the technology landscape globally.
