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Microsoft and OpenAI end exclusivity clause, allowing OpenAI to distribute AI models through multiple cloud providers

Yahoo Finance AIApr 28, 20262 min read
Microsoft and OpenAI end exclusivity clause, allowing OpenAI to distribute AI models through multiple cloud providers

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3 Key Points

  1. OpenAI and Microsoft revised their partnership agreement, removing exclusivity rights that previously made Microsoft the sole distributor of OpenAI's AI models. Microsoft now holds a non-exclusive licence to OpenAI's intellectual property through 2032.

  2. Under the new terms, Microsoft remains OpenAI's principal cloud partner and will continue to deploy OpenAI's products on Azure before any other provider, unless technical constraints prevent this. However, OpenAI is now free to offer its AI products to clients using any cloud service, including through Amazon.

  3. Microsoft will no longer make revenue share payments to OpenAI. Instead, OpenAI will continue to pay Microsoft a designated share of revenue at the existing percentage until 2030, subject to a defined cap. The agreement also eliminated a clause that would have allowed OpenAI to end payments to Microsoft upon reaching artificial general intelligence.

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