Market AnalysisMay 13, 20262 Min

OpenAI, Microsoft Set $38-Billion Cap On Revenue Sharing Amid Partnership Reset

OpenAI and Microsoft have reportedly agreed to cap total revenue-sharing payments at $38 billion. This marks another shift in the equation between the two companies.

The agreement comes after the companies renegotiated their contract in April 2026. Now, as per the deal, OpenAI is allowed to work with other technology firms, such as Amazon and Google.

The revised arrangement could also make OpenAI more attractive to investors. The company is reportedly working towards a public offering that could happen as early as the end of this year.

Microsoft had earlier said in April that revenue-sharing payments from OpenAI would continue through 2030. The payments would remain at the previously agreed percentage, but would be subject to an overall cap.

Microsoft’s Early Investment In OpenAI

Microsoft had targeted a $92-billion return from its early investments in OpenAI, according to planning documents from early 2023 that were disclosed in court on May 11. The partnership became one of the defining alliances of the modern AI boom, with Microsoft investing around $13 billion in the ChatGPT maker through early 2023.

OpenAI’s Rise

OpenAI’s valuation has grown significantly in recent years. The company reached a valuation of $852 billion by the end of March. As of October 2025, the equity share of Microsoft in the venture stood at around $135 billion.

However, the collaboration hasn’t been without troubles. On occasions in the past, both companies have had disagreements over the terms of their partnership. Also, the companies have begun competing against each other in the field of AI technology. Microsoft gained an ownership stake of 27% in OpenAI as part of its restructuring efforts the previous year.

Elon Musk’s Lawsuit Against OpenAI, Microsoft

The partnership has also drawn scrutiny from Elon Musk, who co-founded OpenAI alongside Sam Altman and Greg Brockman.

In a 2024 lawsuit, Musk accused Altman and Brockman of abandoning OpenAI’s original nonprofit mission aimed at benefiting humanity after the company moved towards a for-profit structure.

Musk also alleged that Microsoft helped facilitate that shift. OpenAI, Altman, Brockman and Microsoft have all denied wrongdoing, stating that Musk’s claims are baseless and intended to benefit his own AI company, xAI, which launched in 2023.

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