OpenAI alters partnership with Microsoft, limits revenue share

OpenAI and Microsoft have revealed an updated partnership on Monday that will enable the artificial intelligence (AI) company to cater to clients through any cloud provider.

Under the revised agreement, the companies explained that while revenue-sharing payments from OpenAI to Microsoft are capped, they will persist until 2030, regardless of OpenAI's technological advancements.

Microsoft has long supported OpenAI, contributing over $13 billion since 2019. The firms describe their collaboration as both central and strategic, although recently, there have been hints of tension as they encroach upon each other's domains. 

In a memo earlier this month, Denise Dresser, who heads revenue at OpenAI, mentioned that the partnership has "constrained our capability to engage with enterprises in their preferred manner."

"We are announcing today a revised agreement that aims to streamline our collaboration, emphasising flexibility, assurance, and a focus on widely delivering AI advantages," OpenAI shared in a blog post.

Microsoft's stock has dipped by more than 1% in premarket trading on Monday.