The next phase of the Microsoft-OpenAI partnership: Microsoft’s license for OpenAI IP for models and products will now be non-exclusive.

Microsoft and OpenAI have announced a significant restructuring of their partnership, marking a new phase in their collaboration. Under the updated terms, Microsoft's license to use OpenAI's intellectual property for models and products is now non-exclusive, ending the previous exclusive arrangement. However, Microsoft remains OpenAI's primary cloud partner, and OpenAI products will continue to ship first on Azure—unless Microsoft cannot or chooses not to support the necessary capabilities. This change allows OpenAI to serve its products to customers across any cloud provider, broadening its reach.

Financially, the deal sees Microsoft stop paying a revenue share to OpenAI, while OpenAI's revenue share payments to Microsoft continue through 2030 at the same percentage but with a total cap, independent of OpenAI's technology progress. Microsoft also retains its license to OpenAI IP through 2032 and remains a major shareholder, directly participating in OpenAI's growth. This restructuring reflects OpenAI's increasing independence and market presence, while Microsoft secures long-term access to cutting-edge AI models.