Microsoft and OpenAI have renegotiated their partnership, ending Microsoft's exclusive licence to OpenAI's technology. Microsoft retains a non-exclusive licence through 2032, remains the primary cloud partner, and keeps its ~27% equity stake. OpenAI can now sell its models and products across any cloud provider, including AWS and Google Cloud. Revenue share from OpenAI to Microsoft continues through 2030 with a cap, while Microsoft no longer pays a revenue share on resold OpenAI products. The AGI clause — which gave Microsoft interpretive power over when AGI was reached — has been removed entirely. The restructuring follows a February 2026 Amazon-OpenAI deal worth up to $50 billion and resolves the contractual tension that deal created. Microsoft shares fell ~3% on the news, while Amazon and Alphabet gained slightly, reflecting the market's view that Azure loses a key competitive differentiator in the AI cloud race.
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