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Microsoft, OpenAI Rewrite Partnership

Microsoft (MSFT) on Monday announced an amended long-term agreement with OpenAI (OPAI.PVT) that will see the company no longer have exclusive access to the AI startup’s intellectual property and AI models, while also altering its revenue-sharing deal with OpenAI.

The news comes ahead of Microsoft’s earnings report on Wednesday, and just six months after the two companies formalised an agreement that allowed OpenAI to transform into a for-profit business.

Under the terms of that deal, Microsoft was given exclusive access to OpenAI’s IP and models until the company achieved artificial general intelligence (AGI), or AI that’s as smart or smarter than humans. The new agreement, however, eliminates that clause, allowing OpenAI to provide its models to Microsoft’s competitors.

Microsoft’s Azure will continue to serve as OpenAI’s primary cloud platform and get access to its latest products first, but the new agreement means OpenAI can now offer all of its services through competing cloud providers, such as Amazon Web Services.

Microsoft will no longer pay a revenue share to OpenAI, though OpenAI will have to continue making revenue-sharing payments to Microsoft through 2030.

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