Microsoft Adjusts OpenAI Partnership Agreement: Will No Longer Pay Revenue Share to OpenAI

Microsoft has officially announced an updated partnership agreement with OpenAI, further clarifying the long-term nature of their collaboration. Under the new agreement, Microsoft remains OpenAI’s primary cloud partner, and OpenAI products will continue to launch first on Azure—unless Microsoft is unable or chooses not to support the relevant capabilities. At the same time, OpenAI may now deploy all its products on any cloud service provider. The agreement also states that Microsoft holds a license to OpenAI’s model and product intellectual property through 2032; however, this license has changed from exclusive to non-exclusive. Microsoft will no longer pay revenue-sharing payments to OpenAI, while OpenAI’s revenue-sharing payments to Microsoft will continue through 2030 at the same percentage rate—but subject to an overall cap. Additionally, Microsoft will remain a significant shareholder and continue participating in OpenAI’s growth.