OpenAI and Microsoft amend partnership to simplify collaboration terms

OpenAI and Microsoft announced changes to their partnership agreement that provide what the companies describe as long-term clarity and flexibility for both organizations.

Under the amended terms, Microsoft retains its position as OpenAI's primary cloud partner, with OpenAI products launching first on Azure unless Microsoft cannot or chooses not to support required capabilities. OpenAI can now serve its products to customers across any cloud provider.

Microsoft will maintain a license to OpenAI intellectual property for models and products through 2032, though the license becomes non-exclusive under the new arrangement. The software company will no longer pay revenue share to OpenAI.

Revenue share payments from OpenAI to Microsoft will continue through 2030 at the same percentage but with a total cap, independent of OpenAI's technology progress. Microsoft continues as a major shareholder in OpenAI.

The companies stated the amendment aims to provide greater predictability while maintaining their joint ability to build and operate AI platforms at scale. Both organizations indicated they will continue collaborating on datacenter capacity, next-generation silicon development, and cybersecurity applications.

The partnership changes come as both companies navigate the rapidly evolving artificial intelligence market. The amended agreement addresses operational aspects of their relationship while preserving Microsoft's investment stake in OpenAI.

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