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Microsoft, OpenAI Revise Partnership

(MENAFN) Microsoft and OpenAI announced a sweeping revision to their landmark partnership on Monday, restructuring the terms of their long-term alliance to grant both companies greater operational freedom while preserving Azure as OpenAI's primary cloud home.

Under the renegotiated framework, Microsoft retains its status as OpenAI's principal cloud partner, with OpenAI products continuing to debut on Azure ahead of competing platforms — except in cases where Microsoft is unable or unwilling to support the required technical capabilities.

In a significant departure from the original arrangement, OpenAI will now be permitted to deliver its full product suite to customers across any cloud provider, signaling a meaningful loosening of what had previously been a more exclusive cloud relationship.

Microsoft's license over OpenAI's intellectual property — covering models and products — will extend through 2032, though it will now carry a non-exclusive designation, another notable relaxation of the original terms.

On the financial side, the companies disclosed that Microsoft will no longer funnel revenue share payments to OpenAI, while OpenAI's own revenue share obligations to Microsoft will persist through 2030 at an unchanged percentage, subject to an aggregate cap. Microsoft will additionally maintain its stake in OpenAI's growth as a major shareholder.

Both parties described the restructured deal as a mechanism for injecting greater predictability into their operations as they scale AI infrastructure, while simultaneously carving out room for each to pursue independent opportunities.

The simplified arrangement does not, however, signal a retreat from collaboration. Microsoft and OpenAI confirmed they will continue working in concert on expanding data center capacity, advancing next-generation silicon development, and deploying AI capabilities in the cybersecurity domain.

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