OpenAI and Microsoft have fundamentally renegotiated their partnership, ending OpenAI's exclusive reliance on Microsoft's Azure cloud platform and scrapping the controversial AGI clause.
Under the new terms, OpenAI can now offer its AI products through any cloud provider, though Microsoft remains the primary partner with first-launch rights. The immediate trigger for the renegotiation was OpenAI's plan to sell products on Amazon Web Services, which Microsoft feared would violate the original contract.
Microsoft no longer holds an exclusive license to OpenAI's technology. Instead, it gains a non-exclusive license to OpenAI's models and products through 2032, regardless of future AI advancements. The AGI clause, which would have granted Microsoft IP rights until OpenAI achieved artificial general intelligence, has been eliminated.
Financial terms have also shifted. Microsoft will no longer pay OpenAI a 20% revenue share from selling its models on Azure. OpenAI continues to pay Microsoft a revenue share through 2030, but with an overall cap. Going forward, Microsoft's primary financial benefit comes from its role as a major OpenAI shareholder.
The companies plan to collaborate on data centers, chips, and AI for cybersecurity.