OpenAI and Microsoft have announced an updated agreement that changes key parts of their partnership. The new deal focuses on giving both companies more flexibility while continuing to work together on AI development. Under the new terms, OpenAI is no longer restricted to Microsoft’s cloud, and Microsoft will no longer have to pay a revenue share to OpenAI. ‘The greater predictability in the amended agreement strengthens our joint ability to build and operate AI platforms at scale while providing both companies the flexibility to pursue new opportunities,’ OpenAI explained.
One of the biggest changes is around cloud services. Microsoft will still be OpenAI’s main cloud partner. This means OpenAI’s products will continue to launch first on Microsoft Azure. However, OpenAI can now offer its products through other cloud providers as well.
Another key update is around intellectual property (IP). Microsoft will have a license to OpenAI’s models and products until 2032, but this access is no longer exclusive.
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The financial structure between the two has also changed. Microsoft will no longer pay a share of its revenue to OpenAI. However, OpenAI will continue to share a portion of its revenue with Microsoft until 2030. This arrangement will remain at the same rate as before, but will include a maximum cap, as per the AI company.
Despite these changes, Microsoft will continue to participate directly in OpenAI’s growth as a major shareholder.
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‘From scaling gigawatts of new datacenter capacity, to collaborating on next- generation silicon, to applying AI to advance cybersecurity, and more, we’re excited to keep partnering to advance and scale AI for people and organisations around the world,’ OpenAI said.