OpenAI and Microsoft have entered a non-binding Memorandum of Understanding as they continue negotiations about revenue sharing and AGI clauses. OpenAI is expected to significantly reduce its revenue share with Microsoft from an initial 20% to around 8% by 2030, potentially leading to over $50 billion in retained revenue. The equity framework is largely settled, with both OpenAI’s nonprofit and Microsoft holding approximately one-third of shares, though Microsoft will not have board representation. Discussions also center on the AGI clause, which could alter Microsoft’s access to OpenAI’s technology once it reaches Artificial General Intelligence. As OpenAI raises funds for cloud computing, it has directed attention to revenue initially earmarked for Microsoft. These ongoing negotiations reflect unresolved disputes and Oracle’s recent influence in the sector, raising questions among Microsoft shareholders regarding the disparity in cloud server orders between Microsoft and Oracle.
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