US EditionMicrosoft cuts OpenAI revenue share in a fresh step to loosen their AI alliance
Microsoft will keep first access to OpenAI products on Azure while OpenAI can serve customers through Amazon Web Services and other cloud providers.
- On Monday, Microsoft and OpenAI announced an amended agreement to "simplify" their partnership, making Microsoft's license non-exclusive and ending Microsoft's revenue-share payments to OpenAI. Microsoft remains the primary cloud partner, with products shipping first on Azure.
- Previously, the partnership granted Microsoft exclusive rights, but the companies modified terms to allow OpenAI to serve products across any cloud provider. This shift follows OpenAI's corporate restructuring roughly 6 months ago.
- OpenAI will continue paying Microsoft a capped revenue share through 2030, payments now "independent of OpenAI's technology progress." This change removes prior conditions linking revenue payments to whether OpenAI reached AGI.
- MSFT stock briefly tumbled just shy of $400 following the announcement, though Wedbush analyst Dan Ives called the deal a net positive. He added, "We believe this puts OpenAI on a strong path forward to going public."
- While Microsoft retains a license to OpenAI IP through 2032, OpenAI now has the green light to work with Amazon Web Services. This strategic evolution positions both companies to pursue new opportunities.
25 Articles
25 Articles
Associated Press News
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