OpenAI's Revenue Share Payments to Microsoft Soar 372% in 3 Years

OpenAI's Revenue Share Payments to Microsoft Soar to $865.8 Million in 2025 In a significant development, leaked documents have revealed that Microsoft received $493.8 million in revenue share payments from OpenAI in 2024. This number skyrocketed to $865.8 million in the first three quarters of 2025, according to documents obtained by tech blogger Ed Zitron. The payments represent a significant portion of OpenAI's revenue, which is shared with Microsoft as part of their partnership. The revenue share payments are a result of a previous deal where Microsoft invested over $13 billion in OpenAI. As part of this deal, OpenAI reportedly shares 20% of its revenue with Microsoft. However, a source familiar with the matter revealed that Microsoft also shares revenue with OpenAI, kicking back around 20% of the revenues from Bing and Azure OpenAI Service. Bing is powered by OpenAI, and the OpenAI Service sells cloud access to OpenAI's models to developers and businesses. The leaked payments refer to Microsoft's net revenue, which means that the figures do not include any potential losses or expenses incurred by Microsoft in its partnership with OpenAI. This clarification is essential in understanding the true extent of the revenue share payments. The market impact of these developments is significant, as they shed light on the financial dynamics of the partnership between OpenAI and Microsoft. The partnership has been instrumental in driving the growth of OpenAI's business, particularly in the area of cloud computing. OpenAI's models are used to power various applications, including Bing, which has seen a significant increase in usage since its integration with OpenAI's technology. OpenAI's business model is built around the concept of large language models (LLMs), which are trained on vast amounts of data to generate human-like text. These models are used in various applications, including chatbots, virtual assistants, and content generation tools. The partnership with Microsoft has enabled OpenAI to scale its business and reach a wider audience. The implications of this partnership are far-reaching, as they have the potential to disrupt various industries, including education, healthcare, and finance. The use of AI-powered tools has the potential to improve efficiency, reduce costs, and enhance decision-making. However, it also raises concerns about job displacement, bias in AI decision-making, and the need for regulatory frameworks to govern the use of AI. In recent developments, OpenAI has been making efforts to address some of these concerns. The company has introduced measures to mitigate bias in its models and has established a set of guidelines for the responsible use of AI. Microsoft has also been working to develop its own AI-powered tools, including a new version of its Azure OpenAI Service. As the partnership between OpenAI and Microsoft continues to evolve, it will be interesting to see how the revenue share payments impact the business dynamics of both companies. The implications of this partnership are significant, and it will be essential to monitor its development to understand its full impact on the industry and society at large.