OpenAI breaks out of exclusivity agreements in its partnership with Microsoft

Source: Engadget

Partnership Update

OpenAI is opening up its partnership with Microsoft in the latest amendment to the major multi‑year collaboration between the tech giants. The changes allow OpenAI to offer its newest AI models to other companies and through other cloud providers, stripping Microsoft of its exclusivity rights.

In a joint announcement posted on OpenAI and Microsoft’s websites, Microsoft will remain OpenAI’s primary cloud partner, with the latest products shipping first on Azure, but OpenAI is now allowed to use any cloud provider. Sam Altman, OpenAI’s CEO, posted on X that the company is “now able to make our products and services available across all clouds.”

Key Changes

• Non‑exclusive licensing: Microsoft retains a license for OpenAI’s models and products through 2032, but the license is no longer exclusive.
• Revenue‑share adjustments: Microsoft will no longer pay a revenue share to OpenAI. OpenAI will continue to make revenue‑share payments to Microsoft until 2030, now subject to a total cap.
• Cloud flexibility: OpenAI can deploy its products on any cloud platform, while Azure remains the primary launch environment for new releases.

Historical Context

The two companies have collaborated closely since announcing a multiyear partnership in 2019. Over the years, the collaboration has evolved through several phases. A joint statement in February 2024 still referenced exclusivity agreements, but the latest amendment confirms that OpenAI can break exclusivity. Both parties argue that the changes provide “flexibility, certainty, and a focus on delivering the benefits of AI broadly.”

This article originally appeared on Engadget.
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