Microsoft and OpenAI end Azure cloud exclusivity and revenue sharing, allowing OpenAI to work with other cloud providers while Microsoft retains multi-year IP license and equity stake

Microsoft and OpenAI have agreed to end Azure cloud exclusivity for OpenAI models and remove revenue sharing between the companies. OpenAI gains the ability to work with other major cloud providers, while Microsoft keeps a multi-year IP license and its equity stake.

The shift moves the OpenAI relationship from exclusive distribution control to access and infrastructure provision. This change comes as regulators increase scrutiny of Big Tech AI partnerships and as OpenAI weighs a potential IPO.

For Microsoft investors, the end of exclusivity may push the company to emphasize the breadth of its own AI tooling, its multi-year IP access to OpenAI technologies, and its role as infrastructure provider rather than gatekeeper. Microsoft's stock last closed at US$424.82, with a 30 day return of 19.1% and a 5 year return of 75.8%.