OpenAI on Monday said the rapid pace of innovation requires its partnership with Microsoft to continue evolving in order to benefit customers and both companies. The companies announced an amended agreement aimed at simplifying how they work together, with a focus on flexibility, certainty, and broader delivery of AI benefits.
The updated structure is designed to improve predictability, strengthen large-scale AI platform development, and give both companies flexibility to pursue new opportunities.
Key terms of the amended agreement
Microsoft remains OpenAI’s primary cloud partner. OpenAI products will continue to launch first on Azure unless Microsoft cannot or chooses not to support required capabilities. OpenAI can also provide its products across any cloud provider.
- Microsoft will retain a non-exclusive license to OpenAI IP for models and products through 2032.
- Microsoft will no longer pay revenue share to OpenAI.
- OpenAI will continue revenue share payments to Microsoft through 2030 at the same percentage, subject to a total cap and independent of OpenAI’s technology progress.
- Microsoft will continue to participate in OpenAI’s growth as a major shareholder.
Strategic collaboration focus
While the amended agreement simplifies the partnership structure, both companies said the collaboration remains ambitious. The focus areas include expansion of gigawatt-scale data center capacity, co-development of next-generation silicon, application of AI in cybersecurity, and scaling AI systems for global users and organizations.
Both companies said they remain committed to advancing and scaling AI technologies worldwide.
Commenting on the announcement, Sam Altman, CEO of OpenAI, said:
We have updated our partnership with Microsoft. Microsoft will remain our primary cloud partner, but we are now able to make our products and services available across all clouds. We will continue to provide them with models and products until 2032, and a revenue share will continue through 2030.