Microsoft and OpenAI End Exclusive Cloud Partnership
Microsoft and OpenAI announced a major restructuring of their partnership on April 27-28, 2026, ending Microsoft's exclusive rights to OpenAI's technology and allowing OpenAI products to be distributed across competing cloud platforms like AWS and Google Cloud. The revised deal removes exclusivity clauses while keeping Microsoft as the primary cloud partner with IP rights through 2032.
Partnership Restructuring
Microsoft and OpenAI announced a significant restructuring of their partnership, shifting from an exclusive agreement to a more flexible, time-limited arrangement. The new terms dissolve key exclusivity and revenue-sharing elements, allowing both companies greater freedom to pursue new partnerships.
Key Changes
OpenAI can now serve all its products to customers across any cloud provider, a marked departure from the Azure-exclusive model that previously governed the partnership.
Revenue Terms: Under the new terms, Microsoft will not pay any revenue share to OpenAI when customers use its models via Azure. OpenAI is required to pay Microsoft a revenue share of 20% through 2030, now subject to an undisclosed cap.
Intellectual Property: Microsoft retains a non-exclusive license to OpenAI's intellectual property related to models and products until 2032.
Market Impact
Amazon and OpenAI are poised to quickly capitalize on the change. "We're excited to make OpenAI's models available directly to customers on Bedrock in the coming weeks," Amazon CEO Andy Jassy said on X on Monday, promising more details at a San Francisco event AWS is hosting on Tuesday.
This modification is the most consequential change since Microsoft's initial $1 billion investment in OpenAI in 2019, which has since exceeded $13 billion.