OpenAI Caps Microsoft Revenue Share at $38 Billion in Renegotiated Deal
OpenAI and Microsoft have agreed to cap total revenue-sharing payments at $38 billion, according to Reuters, citing The Information, a change that would sharply reduce Microsoft’s take under their earlier arrangement. The report said Microsoft’s 20% revenue share could previously have reached roughly $135 billion if OpenAI met its long-term targets, implying about $97 billion in savings through 2030, though OpenAI may pay about $6 billion to Microsoft this year versus roughly $4 billion previously because it can no longer defer some payments.
The revised economics come a day after OpenAI launched the OpenAI Deployment Company, a majority-owned business it said would start with more than $4 billion in initial funding and 19 investment firms, consultancies and system integrators to help companies put frontier AI into production. OpenAI also agreed to acquire Tomoro, an AI consulting company that will form the initial bulk of the new deployment business.
From the sources (19 posts)
@andrewcurran_OpenAI is acquiring Tomoro as part of today's launch of The OpenAI Deployment Company.
@openaiToday we’re launching the OpenAI Deployment Company to help businesses build and deploy AI. It's majority-owned and controlled by OpenAI. It brings together 19 leading investment firms, consultancies, and system integrators to help organiz
@openaiWe’ve also agreed to acquire Tomoro, which will bring 150 experienced Forward Deployed Engineers and Deployment Specialists to the OpenAI Deployment Company from day one.
@wallstengine$BAM announced a $500M investment in The OpenAI Deployment Company, a new platform built with OpenAI and other investors to help large enterprises move from AI pilots to full-scale deployment across their businesses.
@negligible_cap*OPENAI TO BUY CONSULTING FIRM TOMORO FOR PRIVATE EQUITY JV OpenAI is acquiring consulting firm Tomoro for a private equity joint venture with $TPG and $BN. Consultants from the acquisition will help staff OpenAI’s new entity, OpenAI Depl
@firstsquawkOPENAI ACQUIRES TOMORO, ADDING 150 ENGINEERS AND DEPLOYMENT SPECIALISTS TO DEPLOYCO.
@firstsquawkB CAPITAL, BBVA, EMERGENCE CAPITAL, GOANNA, GOLDMAN SACHS, SOFTBANK, THRIVE, WARBURG PINCUS, AND WCAS JOIN AS FOUNDING PARTNERS.
@firstsquawkOPENAI HAS DECIDED TO PURCHASE TOMORO, A FIRM SPECIALIZING IN APPLIED AI CONSULTING AND ENGINEERING.
@firstsquawkOPENAI'S DEPLOYCO, WHICH IS MAJORITY-OWNED AND CONTROLLED BY OPENAI, WILL LAUNCH WITH OVER $4 BILLION IN INITIAL FUNDING.
@firstsquawkOPENAI STARTS OPENAI DEPLOYMENT COMPANY TO ASSIST ORGANIZATIONS IN CREATING AND IMPLEMENTING AI SYSTEMS.
@sebjohnsonukThe real headline for people in the UK is that a Scottish company has just been acquired by @OpenAI. The company, Tomoro AI, is an AI consulting company that will form the initial bulk of the "OpenAI Deployment Company". Talent in the UK
@kimmonismusOpenAI's announcement says the new deployment-company launches with more than $4 billion in initial investment, but Axios reports additional investor terms not included in the announcement: a guaranteed minimum 17.5% return and capped pro
@theinformationExclusive: OpenAI’s Microsoft revenue-sharing payments are now capped at $38 billion. The new deal saves OpenAI $97 billion, boosting its long-term investor appeal. More details:
@kimmonismussauce
@wallstengineOPENAI CAPS MICROSOFT REVENUE SHARE AT $38B Under the old structure, Microsoft’s 20% revenue share could have reached roughly $135B if OpenAI hit its long-term targets. The Information reports the renegotiated deal caps total OpenAI payme
@polymarketmoneyOpenAI reportedly renegotiated its $MSFT deal to cap total revenue-share payments at $38B, down from a potential ~$135B under the old structure. The trade-off is OpenAI may pay more near term but it could save ~$97B through 2030 while clea
@stocksavvyshayOpenAI reportedly capped $MSFT total revenue share at $38B under its revised deal. That could give OpenAI more flexibility to work with $AMZN and $GOOGL as it builds toward a potential IPO.
@reutersOpenAI, Microsoft agree to cap revenue-sharing at $38 billion, The Information reports
@stocksavvyshay$MSFT 20% revenue share could have reached ~$135B under old structure so huge revision in new deal. The trade-off is OpenAI may pay more near term because it can no longer defer some payments.