OpenAI ends Microsoft exclusivity

OpenAI and Microsoft have ended Microsoft’s exclusive license to OpenAI technology, loosening one of artificial intelligence’s tightest commercial ties. (blogs.microsoft.com) (money.usnews.com) The companies said April 27 that Microsoft’s license is now non-exclusive, while Microsoft will keep access to OpenAI models and intellectual property through 2032. Azure also remains OpenAI’s “primary cloud partner,” according to Microsoft. (blogs.microsoft.com) (arstechnica.com) The revised terms also changed the money flows. Microsoft said it will no longer pay a revenue share to OpenAI, while OpenAI will keep paying Microsoft a revenue share through 2030 at the same percentage but with a total cap. (blogs.microsoft.com) (cnbc.com) That gives OpenAI room to pursue customers and infrastructure beyond Microsoft’s cloud, including Amazon Web Services and other providers cited in reports on the amended deal. Denise Dresser, OpenAI’s revenue chief, said in a memo that the old structure had “limited our ability to meet enterprises where they are.” (money.usnews.com) (cnbc.com) The timing is awkward for OpenAI. Reuters reported April 28, citing The Wall Street Journal, that OpenAI recently missed internal targets for new users and revenue, raising concern inside the company about whether growth can keep up with heavy data-center spending. (money.usnews.com) (bloomberg.com) The enterprise market helps explain the rewrite. Big companies often run workloads across multiple clouds, and OpenAI has been adding admin tools inside ChatGPT Enterprise and Edu so customers can track adoption and usage at the workspace level. (help.openai.com) OpenAI has also been pushing deeper into workplace software. On April 22, it rolled out workspace agents for Business, Enterprise, Edu, and Teachers plans, adding shared automation tools that connect ChatGPT to apps such as Slack and Gmail. (releasebot.io) (enterpriseai.economictimes.indiatimes.com) Microsoft is not walking away. The company said it remains OpenAI’s major shareholder with a 27% equity stake, and said the amended agreement is meant to provide “flexibility” and “certainty” rather than unwind the partnership. (blogs.microsoft.com) (forbes.com) The new arrangement leaves the partnership intact but less exclusive: Microsoft still gets long-term access, and OpenAI gets more freedom to chase customers wherever they already run their systems. (blogs.microsoft.com) (arstechnica.com)