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OpenAI and Microsoft have announced a revised partnership agreement that changes how the two companies collaborate on artificial intelligence services. The updated arrangement allows OpenAI to provide its products to customers across multiple cloud platforms instead of a single provider.
Microsoft will continue as a primary cloud partner, while the agreement shifts certain limits on exclusivity and revenue sharing. The companies said the changes support wider access to AI tools and flexibility for enterprise users. The agreement outlines long-term terms for intellectual property use and financial arrangements through 2030 and beyond.
The revised agreement allows OpenAI to distribute its products across different cloud providers, including competitors to Microsoft. Previously, Microsoft had greater exclusivity in hosting OpenAI models on its Azure platform.
Under the updated structure, OpenAI can now serve customers where demand exists, provided technical conditions are met. Microsoft will remain the main cloud partner and will host OpenAI products first on Azure when possible. The companies stated in a joint update that OpenAI products will ship on Azure unless Microsoft cannot support the required capabilities.
OpenAI described the arrangement in its blog post, stating, "Today, we are announcing an amended agreement to simplify our partnership and the way we work together, grounded in flexibility, certainty, and a focus on delivering the benefits of AI broadly."
The statement also noted that the new model allows both companies to operate with more predictable conditions. Additionally, Microsoft retains access to OpenAI intellectual property through a non-exclusive license valid until 2032. This shift enables OpenAI to expand distribution channels beyond a single cloud ecosystem.
The financial arrangement between OpenAI and Microsoft includes a cap on revenue share payments. OpenAI will continue paying Microsoft through 2030, but the total amount will not exceed a defined limit.
The payments remain independent of OpenAI’s technology progress. Microsoft will no longer pay revenue share to OpenAI under the revised agreement. Instead, Microsoft maintains its position as a major investor, continuing to participate in OpenAI’s growth.
The companies confirmed that Microsoft’s intellectual property license remains active through 2032 but is no longer exclusive. OpenAI noted that the updated structure aims to simplify financial interactions and reduce operational limits.
A company statement explained, "Revenue share payments from OpenAI to Microsoft continue through 2030, independent of OpenAI's technology progress, at the same percentage but subject to a total cap." The change marks a shift from earlier arrangements where exclusivity played a stronger commercial role. This adjustment aligns with OpenAI’s effort to engage with multiple cloud environments.
Following the announcement, Microsoft shares moved lower in both premarket trading and regular trading hours. At the same time, other technology firms such as Alphabet and Amazon recorded small gains in early trading sessions. Market activity reflected investor reactions to the expanded cloud flexibility granted to OpenAI under the new deal structure.
