In a significant restructuring of their long-standing collaboration, OpenAI and Microsoft have updated their partnership agreement, officially ending exclusivity and removing the controversial artificial general intelligence (AGI) clause.
The announcement, made separately by both companies on Monday, reflects what they described as the “rapid pace of innovation” and the need for a more flexible working relationship in the evolving AI landscape.
“Today, we are announcing an amended agreement to simplify our partnership and the way we work together, grounded in flexibility, certainty, and a focus on delivering the benefits of AI broadly. The greater predictability in the amended agreement strengthens our joint ability to build and operate AI platforms at scale while providing both companies the flexibility to pursue new opportunities,” the companies said.
A key change in the revised deal is the removal of the AGI clause, which earlier outlined multiple “if-this-then-that” scenarios based on which company achieved AGI first. The clause had created uncertainty around the long-term structure of the partnership and is now completely removed.
Under the new terms, Microsoft remains OpenAI’s primary cloud partner, with OpenAI products continuing to launch first on Azure. However, Microsoft now has the right to choose which capabilities it supports, giving it more control over resource allocation.
At the same time, OpenAI is now free to offer its products to other cloud providers, including Amazon and Google, enabling non-exclusive partnerships and broader distribution opportunities.
Microsoft will retain access to OpenAI’s models and products until 2032, but the license is now non-exclusive. This change allows OpenAI to expand its reach while reducing dependency on a single cloud provider. In return, Microsoft will no longer be required to pay revenue share to OpenAI.
OpenAI will continue sharing revenue with Microsoft until 2030, but the total payout has now been capped. The revenue-sharing model is also no longer tied to OpenAI’s technological milestones.
Despite these changes, Microsoft will remain a major shareholder in OpenAI, maintaining its strategic stake in the AI company.
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