OpenAI and Microsoft Agree to Revenue Cap Amid New Big Tech Partnerships

OpenAI and Microsoft have agreed to cap their revenue-sharing agreement at $38 billion, according to The Information. This strategic move allows OpenAI to form partnerships with other big tech companies like Amazon and Google, as the company prepares for an impending public offering.

Microsoft's early investment of $13 billion since 2019 has been crucial in OpenAI's emergence as a leader in artificial intelligence, leveraging Microsoft's Azure cloud-computing business. OpenAI's market value reached $852 billion this year, but competition from firms like Anthropic is intensifying.

Elon Musk, an original co-founder of OpenAI, has filed a lawsuit seeking $150 billion in damages. Musk claims co-founders Sam Altman and Greg Brockman have deviated from OpenAI's initial nonprofit mission. The lawsuit calls for their removal and compensation to the nonprofit.

(With inputs from agencies.)