OpenAI ends its exclusive partnership with Microsoft

Source: Ars Technica

Background

Since Microsoft invested $1 billion in OpenAI in 2019, the exclusive partnership between the two firms has been one of the strongest and most consequential in the AI industry.

Amended Agreement

OpenAI and Microsoft jointly announced an amended agreement that will allow OpenAI to go beyond Microsoft’s Azure and “serve all its products to customers across any cloud provider.”

• Microsoft will continue to hold a license for OpenAI’s IP and models through 2032, and Azure will remain the “primary cloud partner” for OpenAI during that period (subject to Microsoft’s ability to honor it).
• The license is now non‑exclusive, enabling OpenAI to make its models available through other major cloud providers.

Cloud Provider Flexibility

OpenAI can now distribute its models on any cloud platform, expanding its reach beyond Azure while still maintaining a partnership with Microsoft.

Financial Terms

• OpenAI will keep the 20 percent revenue‑share payments to Microsoft under the amended deal.
• The total payment is now limited to an unspecified cap and is guaranteed only through 2030.
• The revenue share is “independent of OpenAI’s technology progress,” removing the original “AGI clause” that would have ended exclusivity if OpenAI achieved artificial general intelligence.

Reference to the original AGI clause discussion