Microsoft and OpenAI agree to cap total revenue sharing payments at $38 billion

Microsoft and OpenAI have reportedly agreed to cap total revenue sharing payments at $38 billion, according to a report from The Information on Monday. Microsoft and OpenAI did not immediately comment on the arrangement.

The cap follows a renegotiation of parts of the companies' contract last month, which may give OpenAI more room to build partnerships with other cloud and technology companies, including Amazon and Google.

For Microsoft, the deal protects its major AI relationship built on its $13 billion investment in OpenAI since 2019, which strengthened Azure's position in cloud computing. For OpenAI, the cap may make its financial story easier to explain to investors as it weighs a possible public offering.