OpenAI amends Microsoft partnership to end exclusivity

OpenAI and Microsoft have amended their long-standing partnership, ending Microsoft's exclusive cloud rights for OpenAI's AI models. The changes allow OpenAI to offer its products across any cloud provider while keeping Azure as the primary partner. The joint announcement emphasizes flexibility and broader AI access.

OpenAI and Microsoft jointly announced on April 27 an amended agreement that removes Microsoft's exclusivity over OpenAI's models and intellectual property. Under the new terms, OpenAI can serve its products to customers on any cloud provider, including Amazon Web Services. Microsoft retains a non-exclusive license through 2032, with Azure remaining the primary cloud partner, provided Microsoft can fulfill its commitments. OpenAI will continue 20 percent revenue share payments to Microsoft, now capped and guaranteed only through 2030, independent of technological milestones like artificial general intelligence. The revenue share flows from OpenAI to Microsoft, reversing earlier phrasing in some reports that Microsoft pays OpenAI. Sam Altman, OpenAI's CEO, posted on X that the company is now able to make its products available across all clouds. The amendment follows a $50 billion deal between OpenAI and Amazon two months ago, which reportedly prompted Microsoft to threaten legal action, according to the Financial Times. In February, the companies' joint statement still referenced exclusivity. OpenAI Chief Revenue Officer Denise Dresser wrote in a staff memo that the Microsoft partnership had limited enterprise outreach, particularly to Amazon Bedrock users, where interest has been staggering. Amazon CEO Andy Jassy expressed excitement on social media about making OpenAI models available on Bedrock soon, alongside new features.

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