OpenAI, Microsoft end exclusive IP deal in revised pact

OpenAI and Microsoft Revamp AI Partnership Revenue Deal

OpenAI and Microsoft disclosed an amended partnership agreement on Sunday that removes Microsoft’s exclusive rights to OpenAI’s intellectual property and allows the AI company to serve customers across any cloud provider, according to The Wall Street Journal. The revised deal grants OpenAI more freedom while capping the revenue share it must pay Microsoft, marking the latest chapter in a relationship that has grown increasingly complex as the AI industry has expanded.wsj

A Simpler, Less Exclusive Deal

Under the reworked terms, Microsoft will remain OpenAI’s primary cloud partner and retain a license to OpenAI’s intellectual property through 2032, but the arrangement is no longer exclusive. OpenAI can now serve enterprise customers on competing cloud platforms, not just Microsoft’s Azure — a shift that builds on a series of concessions Microsoft has made since early 2025, when it first relinquished its status as OpenAI’s sole cloud provider. The revenue share Microsoft receives from OpenAI is also being limited through 2030, the Journal reported, eliminating a contentious provision from earlier contracts.investing

The amended agreement extends a restructuring process that accelerated in October 2025, when OpenAI completed its conversion into a public benefit corporation and granted Microsoft a 27% ownership stake valued at roughly $135 billion. At the time, OpenAI committed to purchasing an additional $250 billion in Azure services, but Microsoft gave up its right of first refusal as OpenAI’s compute provider. Since then, OpenAI has signed major cloud deals with Amazon Web Services, Oracle, Google Cloud, and CoreWeave, committing more than $1 trillion in total infrastructure spending over the next decade.openai

Tensions Behind the Truce

The renegotiation reflects a partnership that has weathered repeated friction. Microsoft first flagged OpenAI as a competitor in its annual filings in mid-2024. Through 2025, the two sides clashed over OpenAI’s corporate restructuring, Microsoft’s share of the new entity, and the scope of exclusivity clauses that OpenAI viewed as constraining its growth. A February 2026 joint statement sought to reassure investors that the relationship remained intact after OpenAI announced a deal with Amazon, emphasizing that Azure would continue hosting OpenAI’s stateless APIs and first-party products.microsoft

Microsoft shares fell in early trading following the announcement. Analysts have viewed the evolving arrangement as a trade-off: Microsoft accepts a smaller claim on OpenAI’s business in exchange for long-term access to its models, a massive Azure spending commitment, and clarity on a partnership that had become a source of investor uncertainty. As The Wall Street Journal noted, the deal “marks a turning point in one of the most important relationships in the technology industry”.yahoo