Microsoft Corp (NASDAQ:MSFT) will receive 20% of OpenAI’s total revenue until 2032 under a revised agreement.



<h2>Updated Revenue Share Agreement</h2>



The new deal, updated in the fall, allows OpenAI to collaborate with other compute providers without giving Microsoft the first right of refusal.



Some payments under the agreement will occur in the later years.



Initially, Microsoft was entitled to 20% of OpenAI’s revenue until 2030, the Information reported on Wednesday.



<h2>Strategic Partnership With PBC Formation</h2>



Last October, Microsoft unveiled a new phase in its partnership with OpenAI.



As part of the updated agreement, Microsoft will support OpenAI’s creation of a public benefit corporation (PBC), securing a 27% stake in OpenAI Group PBC, valued at approximately $135 billion.



The deal preserves the partnership’s key elements, including Microsoft’s exclusive IP rights and Azure API exclusivity until an independent panel verifies Artificial General Intelligence (AGI).



<h2>OpenAI’s Expansion And Funding Round</h2>



In addition to the new partnership terms, OpenAI is seeking up to $40 billion in funding from key suppliers, including Nvidia Corp (NASDAQ:NVDA), Amazon.com Inc (NASDAQ:AMZN), and Microsoft, to support its expansion, particularly data center capacity.



The company is also in talks with SoftBank Group Corp (OTC:SFTBY) (OTC:SFTBF) and Middle Eastern investors to secure further funding.



This funding round, aimed at helping OpenAI scale its operations, will likely close in the first quarter of 2026.



MSFT Price Action: Microsoft shares were up 1.14% at $401.44 at the time of publication on Wednesday, according to Benzinga Pro.



Image: Shutterstock

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Microsoft has extended its revenue-sharing deal with OpenAI, securing 20% of the AI leader's revenue until 2032. This agreement allows OpenAI to work with other providers and includes a 27% stake for Microsoft in OpenAI's new Public Benefit Corporation, valued at $135 billion. OpenAI is also seeking up to $40 billion in funding to expand its operations, with talks involving major investors. Microsoft shares rose 1.14% to $401.44 following the announcement.

- Microsoft Corp will receive 20% of OpenAI's total revenue until 2032 under a revised agreement.  
- The updated deal allows OpenAI to collaborate with other compute providers and includes Microsoft supporting OpenAI's formation of a public benefit corporation, securing a 27% stake.  
- OpenAI is also seeking up to $40 billion in funding from various suppliers to support its expansion, expecting to close the funding round in early 2026.

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Microsoft Locks In 20% Of OpenAI's Revenue Until 2032 In High-Stakes Strategy Shift