Microsoft, OpenAI amend partnership agreement to allow broader cloud access

Microsoft and OpenAI announced on Monday an amended long-term agreement to simplify their partnership, giving both companies more flexibility while maintaining Azure as OpenAI’s primary cloud platform.

Under the revised agreement, Microsoft will remain OpenAI’s primary cloud partner, and OpenAI products will be released first on Azure unless Microsoft cannot, and chooses not to, support the required capabilities.

The amendment also allows OpenAI to serve all of its products to customers across any cloud provider, marking a shift from a more exclusive cloud arrangement between the two companies.

Microsoft will continue to hold a license to OpenAI’s intellectual property for models and products through 2032, though the license will now be non-exclusive.

The companies said Microsoft will no longer pay revenue share to OpenAI, while OpenAI’s revenue share payments to Microsoft will continue through 2030 at the same percentage, subject to a total cap.

Microsoft will also continue to participate directly in OpenAI’s growth as a major shareholder.

The companies said the amended agreement is intended to provide greater predictability as they build and operate AI platforms at scale, while giving both sides room to pursue new opportunities.

Despite the simplified structure, Microsoft and OpenAI said their cooperation will continue in areas including expanding data center capacity, developing next-generation silicon and applying AI to cybersecurity.