Microsoft CEO Nadella says company will 'exploit' royalty-free access to OpenAI's frontier models through 2032 under revised partnership

Microsoft no longer pays royalty fees to OpenAI for access to OpenAI's models and agent products, but retains intellectual property rights to OpenAI's frontier model through 2032.

Microsoft's AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year, in the last full quarter under the previous deal structure.

Microsoft continues to benefit from OpenAI as a customer (including cloud services and AI accelerator purchases), OpenAI's commitment to buy more than $250 billion worth of Microsoft's cloud services, and Microsoft's 27% stake in OpenAI.