Microsoft and OpenAI have redefined their partnership with a new deal that allows OpenAI to offer its products across all cloud providers, ending Microsoft’s exclusivity. This change comes after OpenAI’s collaboration with Amazon, which posed a challenge to Microsoft. Despite initial tensions, the agreement seems beneficial for both parties. Microsoft retains a 20% revenue share from OpenAI’s offerings, including those on rival platforms like AWS, while no longer sharing revenue from its Azure OpenAI services. The deal extends through 2032 and removes a contentious clause about artificial general intelligence (AGI), allowing both companies more flexibility. Microsoft remains a major shareholder in OpenAI, but is also exploring other AI partnerships to reduce reliance on OpenAI. The revised agreement marks a shift towards financial collaboration rather than a close partnership, as both companies navigate the evolving AI landscape.
How does the new deal between Microsoft and OpenAI work?
