OpenAI and Microsoft cap revenue-sharing at $38B ahead of OpenAI's potential IPO.

OpenAI and Microsoft have agreed to cap their total revenue-sharing payments at $38 billion, a move that could enhance OpenAI's attractiveness to investors as it prepares for a possible public offering by the end of 2026. Under the new terms, Microsoft retains a non-exclusive license to OpenAI's intellectual property until 2032 and will no longer pay revenue shares to OpenAI. OpenAI will continue paying Microsoft a revenue share through 2030, subject to the cap. Microsoft CEO Satya Nadella expressed pride in the early investment, highlighting the commercial nature of their partnership. This agreement also allows OpenAI to offer its products on other cloud platforms beyond Microsoft Azure, increasing its market flexibility.