The partnership that made so much sense from 2019 to 2023 has now made each company too dependent on the other. Why a divorce looks inevitable.

Microsoft’s partnership with OpenAI is complicated, and the pair are intertwined both technologically and financially. While it’s been widely reported that OpenAI shares 20 percent of its revenues with Microsoft, there are additional revenue-sharing agreements in place, according to sources who are familiar with the arrangement.

At the heart of the dispute is OpenAI's desire to restructure to a for-profit business, a move that requires Microsoft's approval.