Microsoft-OpenAI revised deal: revenue-share capped at $38B through 2030, Azure exclusivity dropped, ~$97B savings
Microsoft $MSFT and OpenAI restructured their partnership: revenue-share payments capped at $38B through 2030 instead of open-ended, saving OpenAI up to $97B. Azure exclusivity dropped; OpenAI can now sell its models via rival cloud providers. Sources: CNBC, Sacra
Microsoft $MSFT and OpenAI have restructured the terms of their multi-year partnership. Under the new agreement, OpenAI's revenue-share payments to Microsoft are now capped at $38 billion through 2030, replacing the previously open-ended split. That cap could save OpenAI up to $97 billion in payments over the period. The renegotiation also removes Azure exclusivity. OpenAI is now free to distribute its models through other cloud providers, ending the arrangement that had made Microsoft the sole hyperscaler for ChatGPT-class workloads. Microsoft retains intellectual property rights to OpenAI's models through 2032, irrespective of any AGI milestone clauses that previously could have triggered an exit. OpenAI is expected to pay roughly $6 billion to Microsoft this year on projected revenue around $30 billion. The restructuring lands as both companies prepare for major capital moves, including OpenAI's confidential IPO filing earlier this month. Sources: CNBC, Sacra, gurufocus.com