OpenAI plans to slash revenue share to Microsoft, The Information reports
OpenAI logo is seen in this illustration taken February 8, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights , opens new tab
May 6 (Reuters) - OpenAI has told investors it will share a smaller fraction of revenue with Microsoft (MSFT.O)
, opens new tab , The Information reported on Tuesday.
The percentage would drop by at least half by the end of this decade, the report said.
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Reporting by Harshita Meenaktshi in Bengaluru; Editing by Mrigank Dhaniwala
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There is reason for optimism, dealmakers say, with the recovery in the markets and Trump's easier antitrust policies paving the way for bigger deals. "The probability of very large transactions, perhaps $50 billion-plus, has increased versus a year ago," said John Collins, global co-head of Mergers & Acquisitions at Morgan Stanley, which was ranked No. 4 in overall fee revenue among investment banks and No. 3 for M&A deals. Some $2.14 trillion in deals were signed from January 1 through June 27, up 26% from the same period last year. Part of that increase, however, came from Asia, where activity more than doubled to $583.9 billion. Deal activity in North America rose to $1.04 trillion from January 1 through June 27, up 17% from the first half last year, according to preliminary data from Dealogic. Market volatility, as measured by the VIX index (.VIX), opens new tab, has dropped to levels that indicate investors feel safer to invest today. 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A few big deals helped boost market morale at the height of tariff turmoil, including Global Payments' $24.25 billion acquisition of a card processing and account services firm in April. Charter Communications (CHTR.O), opens new tabin May agreed to buy privately held rival Cox Communications for $21.9 billion. And U.S.-based equipment manufacturer Chart Industries GTLS.N and Flowserve Corp (FLS.N), opens new tab agreed to merge, valuing the combined company at about $19 billion. There were 17,528 deals signed during the first half of this year, compared with 20,583 deals in the same period last year, according to Dealogic. But this year's deals were bigger in size, pushing the total value of deals higher. There was a 62% increase in the number of $10 billion-plus deals versus the same period last year, the data shows. Dealmaking in Asia was a bright spot. Overall M&A activity rose to $583.9 billion in the first six months, up from $269.9 billion a year ago. Led by Japan and China, the region accounted for 27.3% of the global M&A activity, gaining more than 11 percentage points from the same period last year. Some of the region's biggest deals were kept within the Asia-Pacific region. Toyota Motor (7203.T), opens new tab announced plans on June 3 to take one of its suppliers private for $33 billion. On June 16, a consortium led by Abu Dhabi's National Oil Company (ADNOC) launched an $18.7 billion all-cash takeover of Australia's second-largest oil producer Santos ( opens new tab. Asia also helped drive global equity issuance higher despite the market volatility, with overall volume rising nearly 8% to $350 billion from the same period last year. "You will see more Asia-to-Asia activity," said Raghav Maliah, global vice chairman of investment banking at Goldman Sachs, which was ranked No. 2 in overall investment banking fees and No. 1 in M&A revenue. 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