OpenAI Microsoft artificial intelligence tech news AGI AI partnership cloud computing Azure exclusive licensing

Since Microsoft invested $1 billion in OpenAI in 2019, the two firms have maintained one of the most significant and impactful exclusive partnerships in the artificial intelligence industry. Today, however, OpenAI and Microsoft jointly announced a revised agreement that fundamentally alters their collaboration.

The amended deal enables OpenAI to expand beyond Microsoft's Azure platform and serve all its products to customers across any cloud provider.

Key Changes in the Partnership

The announcement confirms that Microsoft will retain a license for OpenAI's intellectual property and models through 2032. During this period, Azure will continue as OpenAI's primary cloud partner, provided Microsoft meets its obligations. However, Microsoft's license will no longer be exclusive, allowing OpenAI to distribute its models through other major cloud providers.

Revenue Share Adjustments

Under the revised agreement, OpenAI will continue making the same 20 percent revenue share payments to Microsoft. However, these payments will now be subject to an unspecified cap and are guaranteed only through 2030. Additionally, the revenue share is no longer tied to OpenAI's technological progress, a notable shift from the original partnership's infamous "AGI clause." The original clause would have terminated exclusivity if OpenAI achieved artificial general intelligence (AGI), a benchmark that has been difficult to define.

Source: Ars Technica
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