OpenAI is changing its long-standing deal with Microsoft by ending the exclusivity that once gave Microsoft sole access to its AI models through Azure. The companies are not breaking up – Microsoft remains a major investor and will continue to use OpenAI’s technology under a long-term license until 2032. However, OpenAI can now offer its models on other cloud platforms like Amazon Web Services and Google Cloud.
This shift marks a major evolution in one of the most influential partnerships in the AI sector. Since 2019, Microsoft has invested around $13 billion into OpenAI, helping transform it from a research-focused lab into a commercial powerhouse behind widely used AI systems like ChatGPT and advanced enterprise tools. In return, Microsoft secured privileged – and for years, exclusive – access to OpenAI’s models, integrating them deeply into Azure as well as into products like Office, GitHub, and its broader enterprise software stack.
Under the revised agreement, OpenAI is moving toward a more flexible, multi-cloud strategy. By removing exclusivity, the company can expand its services across different cloud providers, giving it access to more computing capacity and a wider enterprise customer base. Opening its models to other platforms will allow OpenAI to reach customers who may not operate within Microsoft’s ecosystem, significantly increasing its potential market.
“Microsoft will continue to have a license to OpenAI IP for models and products through 2032. Microsoft’s license will now be non-exclusive,” the ChatGPT maker noted.
The revised agreement also changes the financial structure between the two companies. Earlier, the partnership involved complex revenue-sharing arrangements. But now, under the new terms, Microsoft will no longer share its own revenues with OpenAI, while OpenAI’s obligations to share revenue with Microsoft are expected to continue only until around 2030 and under more limited conditions. This simplifies the business relationship and gives both companies greater financial independence.
Another key update is the removal of a clause related to artificial general intelligence (AGI), which had previously created uncertainty about control and ownership if highly advanced AI systems were achieved. By eliminating this clause, both sides reduce potential future conflicts and make the partnership more predictable as AI technology continues to evolve.
The restructuring comes amid growing tension between the two companies. OpenAI has been expanding rapidly, with reports suggesting it is generating around $2 billion in monthly revenue. At this scale, relying on a single cloud provider became a limitation, both in terms of capacity and business flexibility. At the same time, Microsoft has been exploring its own AI options and partnerships, signaling a gradual shift away from complete dependence on OpenAI.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
