Microsoft cuts AGI clause, caps revenue share to 2030
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- Microsoft will stay OpenAI’s primary cloud partner and keep first‑mover rights on Azure, but OpenAI can now ship its products on any cloud provider.
- OpenAI can serve its products across any cloud platform, opening the door to work with Amazon or Google while still paying Microsoft a revenue share.
- The AGI clause in the partnership agreement has been eliminated, removing the condition that revenue‑sharing would continue until artificial general intelligence is declared.
- Revenue‑sharing payments from OpenAI to Microsoft will now end in 2030, continue at the same percentage but be subject to a total cap, and will not depend on OpenAI’s technology progress.
- Microsoft’s license to OpenAI models and products will remain through 2032 but is now non‑exclusive, allowing other cloud providers to access them.
- Microsoft’s ownership stake in OpenAI stays at roughly 27% on an as‑converted diluted basis, with no indicated change in the new terms.
- OpenAI is focusing on enterprise and coding, cutting side projects like Sora and ChatGPT’s planned erotica features, and restructuring its science department.
Why it matters: The removal of the AGI clause and capping of revenue sharing shift the partnership from a long‑term, technology‑contingent alliance to a time‑limited financial arrangement, giving OpenAI freedom to monetize across clouds while limiting Microsoft’s upside beyond 2030 and securing a fixed revenue stream for Microsoft through 2030.
