OpenAI and Microsoft end exclusivity: OpenAI can now use any cloud provider, AGI clause removed, revenue sharing restructured

OpenAI is now free to distribute its products through any cloud provider, ending its prior exclusive arrangement with Microsoft's Azure platform. Microsoft remains the primary cloud partner and OpenAI products will still launch on Azure first, but exclusivity is gone. The renegotiation was triggered by OpenAI's plan to offer AI products on Amazon Web Services.

The AGI clause — a provision that would have secured Microsoft's IP rights to OpenAI's technology until artificial general intelligence was achieved — has been eliminated. Microsoft now receives a non-exclusive license to OpenAI's models and products through 2032, regardless of technological advancement.

The financial structure flipped: Microsoft no longer pays a revenue share to OpenAI (previously 20 percent of revenue from selling OpenAI models through Azure). OpenAI still pays a revenue share to Microsoft, but only through 2030 and with an overall cap. Microsoft now benefits primarily through its role as a major shareholder.