Microsoft and OpenAI end exclusivity in new partnership

Microsoft and OpenAI ended exclusivity, letting OpenAI work with other cloud providers. Microsoft keeps licensing rights through 2032, but exclusivity and some revenue-sharing terms are removed.

Microsoft and OpenAI have restructured their partnership, ending Microsoft's exclusive rights to OpenAI's AI models and cloud services. OpenAI can now collaborate with other cloud providers, such as Amazon Web Services and Google Cloud, while Microsoft remains its primary cloud partner and retains licensing rights to OpenAI's technology through 2032. Revenue-sharing payments from OpenAI to Microsoft will continue until 2030, but are now subject to a cap. Microsoft will no longer pay revenue share to OpenAI. These changes aim to give OpenAI greater flexibility and operational independence, especially as it explores broader commercialization and potential future public offerings. The announcement led to a decline in Microsoft's stock price, reflecting investor concerns over the loss of exclusivity. However, Microsoft still maintains significant access to OpenAI's technology and remains a major stakeholder. The revised partnership also removes provisions related to artificial general intelligence that could have altered the agreement.