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Microsoft To Stop Sharing Revenue With OpenAI (cnbc.com) 15

Bloomberg reports that Microsoft is ending revenue-sharing payments to OpenAI (paywalled; alternative source) and making the partnership non-exclusive. "The rapid pace of innovation requires us to continue to evolve our partnership to benefit our customers and both companies," Microsoft said Monday in a blog post. Bloomberg reports: The revised deal is meant to simplify a complicated relationship between two partners that has been foundational to OpenAI's rise and the broader AI boom. OpenAI has since pursued partnerships with multiple cloud providers, including Microsoft rival Amazon.com Inc., to meet its growing computing needs to build and service AI software to a wider audience. As part of OpenAI's restructuring last year as a for-profit business, Microsoft received a 27% ownership stake in the AI startup.

Microsoft To Stop Sharing Revenue With OpenAI

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  • see subject.

    • Re:Oh no, anyway (Score:4, Interesting)

      by bill_mcgonigle ( 4333 ) * on Monday April 27, 2026 @02:13PM (#66114846) Homepage Journal

      Noticings:

      Sora shutting down.
      Musk lawsuit back in the news.
      Altman asked to step aside.
      Whistleblower 'suicide' case being reexamined.
      Actual suicide lawsuits, encouraged by chatbot, allegedly.
      Memory wafer deal off?
      Stargate collapsing, rumors Oracle could be caught in the wake.
      Anthropic bails on selling murder services to DoW, OAI jumps in. ...
      Microsoft creating distance.

      Alone it probably doesn't mean much but this thing has real Sun Microsystems vibes in aggregate.

      And here I thought the circular financing deals alone were disqualifying.

      Good luck to the investors.

      • Re:Oh no, anyway (Score:5, Insightful)

        by thegarbz ( 1787294 ) on Monday April 27, 2026 @03:43PM (#66115088)

        Alone it probably doesn't mean much but this thing has real Sun Microsystems vibes in aggregate.

        Sun Microsystems was a profit making business before it entered in a death spiral. I think this has more to do with a reflection that we were in fact in a bubble, and that bubble just got hit by a needle.

        • Sun Microsystems was a profit making business before it entered in a death spiral. I think this has more to do with a reflection that we were in fact in a bubble, and that bubble just got hit by a needle.

          Sun's profits were the Dotcom companies losses. A bit like Nvidea now, except perhaps Nvidea has a better lock in? Sensible DotComs - those that survived in the end in other words - were already using Linux. Using Sun in the Solaris / post SunOS era was normally a sign of either overengineering or cluelessness. Both were killers for a group of companies that often had slim chances of survival even if they were competent.

        • death spiral? I always felt they just straight up fell off a cliff with buying out sco and all their issues and having competing incompatible vm's polluting the java space making it even more fractured and difficult to work with.
      • Re:Oh no, anyway (Score:4, Insightful)

        by Junta ( 36770 ) on Monday April 27, 2026 @04:15PM (#66115150)

        Sam Altman's leadership style is tuned for maximum grift over short term with long-term problems.

        No matter how bullish one may be on LLM in general, I think folks *have* to at least concede that OpenAI itself is in it deep.

        Maybe if they had kept Altman ousted, they could have proceeded in a more viable way, but I suspect OpenAI lwon't fare well in the coming months.

        They aren't the best nor the cheapest at what they do. They don't have "hooks" into the user experience (e.g. Google can force Gemini by control of phone and browsers, Microsoft can force whatever solution they like via the OS and VSCode, OpenAI is). It is *widely* reported that Altman doesn't actually understand this stuff but acts like he does anyway. This could even be forgiven mostly except they made crazy financial commitments way beyond even the most bullish scenario...

      • by gweihir ( 88907 )

        And here I thought the circular financing deals alone were disqualifying.

        Good luck to the investors.

        Luck alone will not be sufficient.

  • How are they going to live without the -$100,000,000 that Copilot is losing? Seriously, profit sharing from what, BING? I don't think Bing is making money on AI.
  • by awwshit ( 6214476 ) on Monday April 27, 2026 @03:29PM (#66115060)

    Microsoft could share profits on AI if it had any. OpenAI is still waiting for its part of Microsoft's nothing burger.

  • Microsoft no longer wants its business partners developing this technology and will start stealing it from those former business partners.
  • "The rapid pace of innovation requires us to continue to evolve our partnership to benefit our customers and both companies,"

    ItsNotReal could use this person's skillset to spin the Genocide into an act of kindness.

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