OpenAI is planning a major strategic pivot that includes significantly cutting the share of revenue it provides to Microsoft. According to The Information, the artificial intelligence company has informed investors that it aims to reduce Microsoft’s revenue share from the current 20% to approximately 10% by the end of the decade.

This change aligns with OpenAI’s broader shift away from a previously planned internal overhaul. The now-abandoned restructuring would have granted CEO Sam Altman increased control over the company. Instead, governance authority will remain with OpenAI’s nonprofit parent organization, effectively curbing Altman’s influence and preserving a more balanced leadership structure.

Microsoft, OpenAI’s largest financial backer, has invested around $13.75 billion in the company to date. This includes a headline-making $10 billion investment announced in early 2023. As part of their current agreement—set to last until 2030—OpenAI shares 20% of its revenue with Microsoft. However, internal documents and investor briefings cited in the report reveal that OpenAI now intends to reduce this figure to 10% by the end of the decade, extending the change to other commercial partners as well.

Despite the financial recalibration, both companies have reiterated their commitment to their long-standing collaboration. Microsoft continues to rely heavily on OpenAI’s models for its AI-powered products like Copilot, and it remains the exclusive host of OpenAI’s APIs via the Azure cloud platform. In a statement, Microsoft emphasized that “the key elements of our partnership remain in place for the duration of our contract through 2030,” including access to OpenAI’s intellectual property, ongoing revenue-sharing terms, and API exclusivity.

Earlier this year, Microsoft also adjusted aspects of its agreement with OpenAI following the launch of its ambitious $500 billion AI data center project, a partnership involving Oracle and Japan’s SoftBank Group. The tech giant appears focused on ensuring long-term access to OpenAI’s technologies well beyond the current contractual timeline.

An OpenAI spokesperson added, “We continue to work closely with Microsoft and look forward to finalising the details of this recapitalisation in the near future.”