OpenAI has revised its partnership agreement with Microsoft, capping the total royalty payments to Microsoft at $38 billion. This change, revealed by The Information, is projected to save OpenAI approximately $97 billion over the long term compared to the previous unlimited 20% revenue share arrangement. However, the new agreement imposes short-term cash flow pressures, requiring OpenAI to pay Microsoft $6 billion in 2024, up from the previously expected $4 billion. The revised terms also ensure Microsoft receives proportional royalties until 2030, regardless of when AGI is achieved, and retains the right to resell OpenAI's technology until 2032. This agreement provides Microsoft with certainty and distances it from "AGI risk," as the original agreement would have terminated Microsoft's commercialization rights upon OpenAI's announcement of achieving AGI.