Microsoft and OpenAI renegotiate deal to end exclusive terms, allowing OpenAI to serve products on any cloud through 2032

On Monday, Microsoft and OpenAI announced a renegotiated agreement that grants Microsoft a non-exclusive license to OpenAI IP for models and products through 2032, replacing the previous exclusive arrangement that had been set to last until OpenAI achieved AGI.

OpenAI products will ship 'first on Azure,' but OpenAI can now serve all its products to customers across any cloud provider. This solves a conflict with OpenAI's up-to-$50 billion investment deal with Amazon, which included exclusive rights for Amazon to host OpenAI's agent-making tool Frontier.

Microsoft no longer receives revenue share from OpenAI, though OpenAI will continue paying revenue share to Microsoft through 2030 subject to a cap. Microsoft retains ownership of about 27 percent of OpenAI's for-profit entity and reported $7.5 billion in a single quarter from its investment in OpenAI.