OpenAI, Microsoft End Deal, Stop Revenue Share
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- OpenAI and Microsoft amended their partnership to let OpenAI’s products run on any cloud provider.
- Microsoft will no longer pay a revenue share to OpenAI under the new terms.
- OpenAI's partnership amendment is described as providing long‑term clarity for both companies amid rapid innovation.
- Bloomberg reports the change ends Microsoft’s exclusive access to OpenAI models and opens the door for deals with Amazon and Google.
- Tom's Hardware notes that while Microsoft stops paying revenue share, it may still receive a capped share through 2030, indicating a partial restructuring.
- OpenAI now operates under a multi‑cloud, non‑exclusive model, moving away from the prior exclusive, revenue‑sharing partnership with Microsoft.
Why it matters: OpenAI gains the freedom to partner with any cloud provider, expanding its market reach, while Microsoft loses its exclusive foothold and revenue‑share income, reshaping the competitive dynamics of AI infrastructure and potentially lowering costs for downstream developers, and could accelerate adoption of generative AI across industries.
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