---
title: "OpenAI and Microsoft reportedly agreed to cap revenue-sharing at $38 billion as both companies"  
description: "OpenAI and Microsoft reportedly agreed to cap revenue-sharing at $38 billion as both companies"  
author: "Anubhav Sharma"  
published: 2026-05-12  
updated: 2026-05-12  
canonical: https://www.mindstick.com/news/4777/openai-and-microsoft-reportedly-agreed-to-cap-revenue-sharing-at-38-billion-as-both-companies  
category: "news"  
tags: ["news"]  
reading_time: 2 minutes  

---

# OpenAI and Microsoft reportedly agreed to cap revenue-sharing at $38 billion as both companies

**OpenAI and Microsoft have agreed to cap total revenue-sharing payments at $38 billion** as both companies restructure their long-term financial alliance.

A report by [The Information](https://www.theinformation.com/articles/openai-save-97-billion-2030-latest-microsoft-deal) reveals that the revised agreement stems from a contract renegotiation completed in April 2026. This milestone fundamentally changes how the two AI and [cloud computing](https://www.mindstick.com/articles/12172/programming-cloud-computing-driven-by-scientific-theory-viewpoints-challenges) powerhouses interact.

## Key Details of the Revised Partnership

- **Strategic Flexibility:** The new terms grant OpenAI the freedom to **forge new partnerships with rival cloud providers** such as Amazon and [Google](https://www.reuters.com/technology/openai-cap-microsoft-revenue-sharing-38-billion-information-reports-2026-05-12/).
- **IPO Ambitions:** Capping the revenue share provides OpenAI with a cleaner, more predictable financial outlook. Executives note this will **strengthen its long-term pitch to investors** ahead of a potential [initial public offering](https://www.mindstick.com/news/1301/nvidia-canceling-its-40-billion-arm-acquisition-report) (IPO) that could launch as early as late 2026.
- **Payment Framework:** OpenAI will continue to pay Microsoft a **20% share of its revenue through 2030** at the previously established percentage rate until the $38 billion threshold is met.
- **Elimination of Deferrals:** Under the previous arrangement, OpenAI could defer payments until after 2032 or until [Artificial General Intelligence](https://answers.mindstick.com/qa/35859/why-is-the-purpose-of-human-life-to-create-artificial-general-intelligence) (AGI) was achieved. The new contract removes this deferral mechanism, meaning OpenAI will pay Microsoft an estimated $6 billion out of its projected $30 billion revenue this year.
- **Commercial Continuity:** Microsoft retains the non-exclusive rights to **resell OpenAI’s technology and IP through 2032**, guaranteeing long-term stability for its Azure enterprise clients.
- The projected impact this deal will have on OpenAI's **cash burn rate**.
- How this contract [restructuring](https://www.mindstick.com/news/4616/microsoft-cuts-9-000-jobs-amid-restructuring-drive) affects OpenAI's concurrent **$100 billion expansion with [Amazon Web Services](https://www.mindstick.com/articles/290104/5-advantages-of-amazon-web-services-aws)**.
- What this means for **[Microsoft Azure](https://www.mindstick.com/articles/198746/things-you-should-know-about-microsoft-azure-as-a-cloud-developer)'s** competitive positioning in the [enterprise AI](https://answers.mindstick.com/qa/116821/how-can-enterprise-ai-systems-defend-against-prompt-injection-attacks) market.

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Original Source: https://www.mindstick.com/news/4777/openai-and-microsoft-reportedly-agreed-to-cap-revenue-sharing-at-38-billion-as-both-companies

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