Microsoft and OpenAI announced Monday the end to an exclusive partnership and revenue-share arrangement that has benefited both—securing Microsoft’s image as an early AI leader, and funneling key resources and computer power to OpenAI.
As part of the new agreement, OpenAI can license its models and products to any third party, on any cloud, including Microsoft’s competitors like Google and Amazon.
In exchange, Microsoft will not need to share a cut of its AI revenue with OpenAI, and the money OpenAI owes Microsoft will be at a fixed ceiling rather than continuing indefinitely.
Microsoft still owns around 27% of OpenAI—worth around $225 billion—which was part of OpenAI’s restructuring plan announced last October that officially turned the ChatGPT maker from a nonprofit to a for-profit business.
