OpenAI announced today that its AI models will no longer be exclusive to Microsoft Azure but will keep the software giant as its main cloud provider, as competition in enterprise AI heats up.
Under the amended agreement, OpenAI said its products will continue to launch first on Microsoft’s Azure cloud, unless Microsoft is unable or unwilling to support required capabilities. At the same time, OpenAI will now be free to offer its products across other cloud providers, a notable change from earlier arrangements that tightly bound it to Azure.
The revised agreement suggests both companies are adapting to new realities. For OpenAI, the ability to deploy models across multiple cloud providers could broaden its enterprise reach and reduce reliance on a single infrastructure provider. For Microsoft, retaining preferred access to OpenAI technology while dropping exclusivity may reflect growing competition for AI workloads and the rising cost of building and operating large-scale systems.
The companies also revised intellectual property and financial terms. Microsoft will retain access to OpenAI’s models and products through 2032, but the license is now non-exclusive. Microsoft will no longer pay a revenue share to OpenAI, while OpenAI will continue making revenue-share payments to Microsoft through 2030, subject to a cap.
The companies said the changes are intended to simplify the relationship while giving both sides more flexibility to pursue new business opportunities. Microsoft remains a major shareholder in OpenAI.
The updated terms mark a sweeping change to one of the most consequential partnerships in the AI industry, which began with Microsoft’s initial $1 billion investment in OpenAI in 2019. That alliance deepened in 2023 when Microsoft reportedly invested around $10 billion to have exclusive cloud access to OpenAI’s models, including ChatGPT.
Since then, Azure has served as the exclusive cloud backbone for OpenAI’s systems, while Microsoft embedded OpenAI technology into offerings such as Microsoft Copilot across Office, Windows, and developer tools. The partnership has been central to Microsoft’s effort to compete with rivals including Google and Amazon in the race to commercialize generative AI.