OpenAI ends its exclusive partnership with Microsoft
Summary
OpenAI and Microsoft have changed their partnership deal. OpenAI can now offer its AI products through other cloud services, not just Microsoft’s Azure, while Microsoft keeps a non-exclusive license to OpenAI’s technology until 2032.Key Facts
- Microsoft invested $1 billion in OpenAI in 2019 and had an exclusive partnership.
- OpenAI’s new deal lets it use other cloud providers besides Microsoft Azure.
- Microsoft will still have a license for OpenAI’s technology until 2032 but it won’t be exclusive.
- OpenAI will pay Microsoft a 20 percent share of revenue, capped and guaranteed through 2030.
- The new deal removes a previous rule that would cancel exclusivity if OpenAI achieved advanced AI known as artificial general intelligence.
- The change follows a $50 billion agreement between Amazon and OpenAI to run OpenAI’s models on Amazon Web Services (AWS).
- Microsoft previously threatened legal action over the Amazon deal, but the new agreement reduces legal risks.
- OpenAI says the old Microsoft-only deal limited its ability to serve customers who use other cloud platforms like Amazon’s.
- Amazon plans to offer OpenAI’s models to its customers soon on its cloud service Bedrock.
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