Microsoft and OpenAI drop their exclusive AI partnership, allowing OpenAI to sell its models through AWS and other cloud providers

Microsoft and OpenAI agreed to end Microsoft's exclusive right to sell OpenAI's AI models, clearing the way for OpenAI to pursue deals with cloud computing rivals including Amazon Web Services, which had already announced plans to jointly develop and host OpenAI products on AWS — a move Microsoft had reportedly considered legal action over. In exchange for dropping exclusivity, Microsoft will no longer pay a revenue share on OpenAI products it resells, though OpenAI will continue paying Microsoft a revenue share on its own product sales through 2030 regardless of whether OpenAI achieves artificial general intelligence, removing a provision in the prior deal that would have ended payments upon reaching that milestone. Microsoft remains OpenAI's primary cloud provider and will receive first access to new OpenAI products on Azure, and as part of OpenAI's restructuring as a for-profit company last year, Microsoft holds a 27% ownership stake in the startup.