Microsoft and OpenAI recently changed the terms of a massive multibillion-dollar partnership to give each company much more flexibility moving forward. The updated agreement officially removes the strict exclusivity rules, meaning OpenAI can now offer its artificial intelligence products to customers on any cloud service provider.
The two companies also removed the artificial general intelligence clause to simplify the financial terms and set a clear timeline for the future.
The revised deal lets the company use other cloud platforms
Under the updated contract, Microsoft will stay the primary cloud provider for OpenAI. New models will still launch first on the Azure platform as long as Microsoft supports the needed technical capabilities. However, the strict exclusivity rule from the earlier agreement is officially gone.
OpenAI now has the freedom to serve its tools to users across other cloud providers. At the same time, Microsoft keeps a non-exclusive license to use OpenAI models and products through the year 2032. The companies are also updating the financial setup.
Microsoft will no longer pay a revenue share to OpenAI. On the flip side, OpenAI will continue to share revenue with Microsoft through 2030, up to a specific cap.
The new contract removes the artificial general intelligence clause entirely
One major change in the agreement is the removal of the artificial general intelligence clause. In the past, the rights held by Microsoft were tied to whether OpenAI successfully reached artificial general intelligence. An independent panel would have decided if the company hit that specific milestone.
With that language removed, the licensing and financial agreements now run on a fixed schedule. The terms no longer depend on the technological progress OpenAI makes. Despite these contract changes, Microsoft remains a large shareholder in OpenAI.
The Redmond tech giant will continue to work alongside the artificial intelligence company to build next-generation silicon and expand global data center capacity.
