OpenAI and Microsoft Cap Revenue Sharing at $38 Billion, Making Way for Amazon

OpenAI and Microsoft have reached a groundbreaking agreement to limit future revenue sharing to $38 billion, according to exclusive information from The Information. Analysts interpret this move as Sam Altman's final maneuver to ensure OpenAI's independence and pave the way for a record-breaking initial public offering (IPO) in the coming years.

The End of "de facto" Exclusivity

Since Microsoft's multi-billion-dollar investment in 2023, OpenAI operated under a complex agreement where the Redmond giant received a significant portion of profits until its investment (mostly comprised of Azure cloud credits) was recouped with interest. By setting a fixed cap of $38 billion, OpenAI "buys" its future freedom.

The primary immediate consequence is the breakdown of infrastructure barriers. With the revenue cap established, OpenAI is free to seek partnerships with other cloud computing giants like Amazon (AWS) and Google (GCP). Internal sources indicate that the startup has already begun discussions to host the training of its next large-scale models on multiple providers, reducing its technological dependency on the Azure platform.

Preparing for the Capital Markets

For financial market investors, this agreement was the missing link to enable an IPO. Without a clear limit on how much Microsoft would drain from the company's cash flow, OpenAI's valuation remained uncertain. Now, with liabilities quantified, the company gains transparency and attractiveness for Wall Street.

The agreement also serves as a strategic response to antitrust investigations in the United States and Europe. By demonstrating that OpenAI can and will negotiate with Microsoft's direct competitors, the companies aim to dispel the narrative that their relationship constitutes a disguised merger that hinders free competition in the AI sector.

Microsoft will remain the main strategic partner and hold a significant minority stake, but OpenAI ceases to be a closed ecosystem within the Azure cloud, transforming into an infrastructure-agnostic entity.

Read the full coverage and financial details on The Information.