Microsoft and OpenAI end AGI clause in partnership agreement; Microsoft loses exclusive IP rights and revenue share obligations

On April 27th, 2026, OpenAI announced changes to its Microsoft partnership: Microsoft will have a non-exclusive license to OpenAI IP for models and products through 2032, will no longer pay a revenue share to OpenAI, and revenue share payments from OpenAI to Microsoft continue through 2030 at the same percentage but subject to a total cap.

The original agreement included a clause that Microsoft's commercial IP rights would become null if AGI (artificial general intelligence—highly autonomous systems that outperform humans at most economically valuable work) was achieved. In October 2025, AGI determination shifted to verification by an independent expert panel. The April 2026 update states Microsoft's IP rights to research will remain 'independent of OpenAI's technology progress,' effectively ending the AGI contingency.

This reverses the founding structure of the partnership: OpenAI stated in July 2019 that it would license pre-AGI technologies to Microsoft as a preferred commercialization partner, with the understanding that rights would change upon AGI achievement. The April 2026 announcement removes that conditional framework entirely.