Microsoft drops its exclusive licence to OpenAI’s technology

Both companies announced the revised agreement in a joint statement on Monday. Microsoft retains a non-exclusive licence to OpenAI’s intellectual property through 2032, remains the primary cloud partner, and keeps its 27% equity stake.

OpenAI will continue paying Microsoft a revenue share through 2030, capped at a total amount. Microsoft shares fell ~3% on the news; Amazon and Alphabet gained slightly.

Microsoft and OpenAI announced on Monday that they have amended their partnership agreement in a restructuring that ends Microsoft’s exclusive right to sell OpenAI’s artificial intelligence models and products.

Under the revised terms, Microsoft will retain a licence to OpenAI’s intellectual property for models and products through 2032, but that licence will now be non-exclusive.

OpenAI may now sell its products and serve customers across any cloud provider, not only Microsoft Azure. In exchange, Microsoft will no longer pay a revenue share to OpenAI on ...