Microsoft and OpenAI Revise Partnership, Remove AGI Clause and Exclusivity

Microsoft and OpenAI have amended their multibillion-dollar partnership, allowing OpenAI to serve all its products to customers across any cloud provider and eliminating the artificial general intelligence (AGI) clause that previously shaped the agreement. The companies announced the changes today, saying the updated terms are meant to simplify how they work together while giving each side more flexibility.



Under the revised terms, Microsoft will remain OpenAI's primary cloud provider. New models will still ship first on Azure, as long as Microsoft supports the required capabilities. That said, the strict exclusivity that defined the early relationship is no longer in place. OpenAI can now serve its products to customers across any cloud provider.


The handling of intellectual property and financial terms has also been revised. Microsoft will continue to have a license to OpenAI's models and products through 2032, but that license is now non-exclusive. Microsoft will no longer pay a revenue share to OpenAI. At the same time, OpenAI will continue sharing revenue with Microsoft through 2030 at the same percentage, though those payments are now capped.

Another notable change is the removal of the AGI clause. In earlier versions of the agreement, Microsoft's rights were tied to whether OpenAI reached artificial general intelligence, a milestone that would have been determined by an independent panel. With that language gone, the financial and licensing terms now follow a fixed timeline, independent of OpenAI's technology progress.

Despite the changes, Microsoft says it remains a major shareholder in OpenAI and will continue working with the company on next-generation silicon and expanding global data center capacity.