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

Microsoft has retained access to OpenAI's intellectual property—including models and agent products—without paying OpenAI for them, with royalty-free access to OpenAI's frontier model extending through 2032.

Microsoft's AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year, when the company reported earnings on Wednesday under the final full quarter of the previous deal structure.

OpenAI has committed to buy more than $250 billion worth of Microsoft's cloud services, and Microsoft holds a 27% stake in OpenAI, offsetting concerns about lost exclusivity.

Over 10,000 Microsoft customers have used more than one AI model across OpenAI, Anthropic, and open-source options, reflecting enterprise demand for model diversity.