OpenAI loosens Microsoft exclusivity

OpenAI and Microsoft rewrote the deal that made Azure the exclusive home for OpenAI’s products. OpenAI can now serve customers across any cloud provider. (blogs.microsoft.com) (cnbc.com) The companies announced the amended agreement on April 27. Microsoft’s license to OpenAI’s models and products now runs through 2032, but it is no longer exclusive. (blogs.microsoft.com) (cnbc.com) Microsoft remains OpenAI’s primary cloud partner, and OpenAI products will still ship first on Azure unless Microsoft cannot or chooses not to support the needed capabilities. That keeps Azure in the center of the relationship even after exclusivity ended. (blogs.microsoft.com) The money terms changed too. Microsoft said it will no longer pay a revenue share to OpenAI, while OpenAI will keep paying Microsoft through 2030 at the same percentage, subject to a total cap. (blogs.microsoft.com) (cnbc.com) CNBC, citing a person familiar with the agreement, reported that percentage is 20%. Reuters, via CNBC TV18, reported Microsoft still keeps its primary-partner status and that same 20% revenue share. (cnbc.com) (cnbctv18.com) The practical effect showed up a day later. Amazon announced a broader OpenAI partnership, and CNBC reported OpenAI’s models were becoming available on Amazon’s cloud after the Microsoft exclusivity change. (cnbc.com) (techcrunch.com) OpenAI said earlier this month that the old arrangement had “limited our ability to meet enterprises where they are,” according to a memo cited by CNBC. The new terms answer that complaint by letting OpenAI sell through the clouds many large companies already use. (cnbc.com) This is not a breakup. Microsoft said it remains a major shareholder, and the companies said they will keep working together on datacenter capacity, chips, and cybersecurity. (blogs.microsoft.com) What changed is the lock on distribution. Azure keeps first-launch rights and a central role, but OpenAI no longer has to make Microsoft the only route to market. (blogs.microsoft.com)