Business · Ars Technica
OpenAI ends its exclusive partnership with Microsoft
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Since Microsoft invested $1 billion in OpenAI in 2019, the exclusive partnership between the two firms has been one of the strongest and most consequential in the AI industry.
Key facts
- Since Microsoft invested $1 billion in OpenAI in 2019, the exclusive partnership between the two firms has been one of the strongest and most consequential in the AI industry
- Microsoft and OpenAI’s amended agreement comes two months after a $50 billion deal between Amazon and OpenAI that included plans for certain OpenAI models to run on Amaon Web Services
- While OpenAI will continue to make the same 20 percent revenue share payments to Microsoft under the amended deal, that total payment will now be limited to an unspecified cap and is only guaranteed
- The announcement clarifies that Microsoft will continue to have a license for OpenAI’s IP and models through 2032 and that Azure will remain the “primary cloud partner” for OpenAI during that time
Summary
The announcement clarifies that Microsoft will continue to have a license for OpenAI’s IP and models through 2032 and that Azure will remain the “primary cloud partner” for OpenAI during that time (should Microsoft continue to be able to honor that). While OpenAI will continue to make the same 20 percent revenue share payments to Microsoft under the amended deal, that total payment will now be limited to an unspecified cap and is only guaranteed to run through 2030. Microsoft and OpenAI’s amended agreement comes two months after a $50 billion deal between Amazon and OpenAI that included plans for certain OpenAI models to run on Amaon Web Services.