Microsoft loses exclusive cloud partnership with OpenAI, enabling rival providers including Amazon Web Services, UBS says

OpenAI's revised partnership with Microsoft—the third major revision in 16 months—now allows OpenAI to host its products across rival cloud providers, ending Microsoft's exclusivity.

Microsoft will no longer pay a revenue share to OpenAI, but future payments from OpenAI are capped and end in 2030. Microsoft holds an economic interest equivalent to around 25% of OpenAI through profit participation rights rather than ordinary equity shares.

UBS describes the change as 'a major win for Amazon.com Inc' and 'tough to describe… as anything but a negative for Microsoft', though the bank retains a 'buy' rating on Microsoft shares with a $510 price target.