OpenAI to reduce payouts to partners from 20% to 8%

OpenAI says it will pay partners about 8% of its revenue, down from about 20% today by the end of the decade.

This shift could leave OpenAI with more than $50 billion extra, without clarifying whether the amount is annual or cumulative.

OpenAI and Microsoft (MSFT.O) are negotiating the price OpenAI will pay to use Microsoft’s servers, The Information reported, citing a person briefed on the talks.

In a separate move, OpenAI said it has afresh tentative deal with Microsoft and plans to grant its overseeing nonprofit a $100 billion equity stake in the for-profit entity. The ChatGPT maker described the Microsoft deal as a nonbinding agreement “for the next phase of our partnership.”

Regulators and rivals eye OpenAI as new changes raise concerns

Thursday’s disclosures included limited specifics. Even so, the planned changes to OpenAI’s setup have drawn renewed scrutiny from regulators, competitors and advocacy groups watching the effects of artificial intelligence.

Founded in 2015 as a nonprofit, OpenAI’s board still oversees the for-profit subsidiary that builds and sells its AI products. It is not yet clear whether the $100 billion equity award to the nonprofit would amount to a controlling stake.

California Attorney General Rob Bonta said last week that his office is investigating OpenAI’s proposed financial and governance changes. The office did not comment on the new announcements but said it is “committed to protecting charitable assets for their intended purpose.”

After meeting with OpenAI’s legal team in Delaware, where the company is incorporated, Bonta and Delaware Attorney General Kathy Jennings sent a letter raising concerns about ChatGPT’s safety. “Together, we are particularly concerned with ensuring that the stated safety mission of OpenAI as a non-profit remains front and center,” Bonta said last week.

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