Analysts liken Microsoft to IBM after OpenAI ends exclusivity

OpenAI and Microsoft rewrote their partnership on April 27, ending Azure’s exclusive right to host OpenAI products across the cloud market. (openai.com) (blogs.microsoft.com) The new terms keep Microsoft as OpenAI’s primary cloud partner, and OpenAI products will still ship first on Azure unless Microsoft cannot support the required capabilities. (openai.com) (blogs.microsoft.com) OpenAI can now sell its products across any cloud provider, including Amazon Web Services and Google Cloud, while Microsoft’s license to OpenAI models and products runs through 2032 on a non-exclusive basis. (cnbc.com) (openai.com) The money changed too. Microsoft will no longer pay a revenue share to OpenAI, while OpenAI’s payments to Microsoft continue through 2030 at the same percentage, subject to a total cap. (blogs.microsoft.com) (cnbc.com) That resets what Azure is selling. Instead of being the only place enterprises could buy OpenAI at scale, Microsoft now has to win on cloud capacity, software integration, security controls and sales reach. (blogs.microsoft.com) (learn.microsoft.com) Microsoft has been preparing for that shift by expanding its own model lineup inside Foundry, including in-house MAI models for transcription, voice and image generation. (forbes.com) OpenAI had signaled the old structure was constraining sales. Denise Dresser, OpenAI’s revenue chief, wrote earlier in April that the partnership had “limited our ability to meet enterprises where they are,” CNBC reported. (cnbc.com) Reuters reported the rewrite also clears the way for OpenAI to pursue cloud deals with rivals including Amazon, as Microsoft gives up exclusive access to OpenAI technology. (finance.yahoo.com) The immediate test is whether Azure customers still choose Microsoft when exclusivity is gone but launch priority, product bundling and enterprise contracts remain in place. (openai.com) (blogs.microsoft.com)