OpenAI and Microsoft finalized an agreement to cap total revenue-sharing payments from OpenAI to Microsoft at $38 billion. The payments will continue through 2030 at the previously agreed percentage but will not exceed that cap [1, 2, 3, 4, 5].
The contract was renegotiated in April and May 2026 to allow OpenAI to pursue partnerships with other companies, including Amazon and Google, expanding beyond its exclusive relationship with Microsoft [1, 3, 4, 5]. OpenAI is reportedly eyeing an initial public offering (IPO) possibly by the end of 2026, with the capped revenue-sharing deal making the company more attractive to investors [1, 3, 4, 5].
Since 2019, Microsoft has invested about $13 billion in OpenAI, according to multiple sources [1, 3, 6, 4, 5]. However, Microsoft executive Michael Wetter testified that the company’s total spending on its OpenAI partnership, including infrastructure and hosting costs for AI computing, exceeds $100 billion through the current fiscal year ending June 2026 [7, 8, 9]. Wetter said, "Microsoft has spent more than $100 billion on its partnership with OpenAI, including original investments, infrastructure and hosting costs, cumulative through the current fiscal year ending in June" [7].
Microsoft holds roughly a 27% stake in OpenAI, which was valued at about $852 billion as of May 2026 [9]. The company aims for returns of $92 billion from its early investments in the AI startup [9].
To reduce reliance on OpenAI, Microsoft is seeking deals with other AI startups. After abandoning plans to acquire startup Cursor over regulatory issues, Microsoft entered talks with Stanford-founded Inception, which develops large language models using diffusion techniques aimed at faster AI generation. Inception is reportedly seeking a valuation above $1 billion [9]. Elon Musk’s SpaceX is also competing to acquire AI startups including Cursor and Inception [9].
In April 2026, Microsoft confirmed the revenue-sharing would last through 2030 at agreed rates but capped at $38 billion [1, 3, 4, 5]. The most recent public update on the negotiations came from The Information on May 11, 2026, reporting the finalized cap [1, 2, 3, 4, 5].
OpenAI’s next major milestone could be launching its awaited IPO by the year-end, leveraging the restructured deal with Microsoft to boost investor confidence [1, 3, 4, 5].
