Microsoft will no longer be OpenAI’s exclusive cloud partner according to a joint statement released by the two companies outlining the next stage of their partnership.
Under the new agreement, Microsoft will remain OpenAI’s primary cloud partner, with the company’s products shipping first on Microsoft’s Azure cloud computing platform unless Microsoft “cannot and chooses not to support” the necessary capabilities.
The new agreement will allow the ChatGPT maker to offer all of its products across any cloud provider.
While Microsoft will retain its license to OpenAI IP for models and products until 2032, the license will no longer be exclusive. This means OpenAI will be able to pursue partnerships with other cloud providers, including Amazon Web Services, with which it signed a strategic partnership worth $50 billion in February.
The Financial Times reported in March that Microsoft was weighing legal action against the company for a potential breach of contract, which is now unlikely to go ahead due to the change in partnership structure.
Microsoft will also no longer provide a portion of its revenue to OpenAI, while OpenAI will continue to have to provide 20 per cent of its income to Microsoft until 2030 regardless of its technological progress. The deal was previously set to end if OpenAI achieved artificial general intelligence, rather than at a fixed date.
Microsoft remains a major shareholder in OpenAI, and will “participate directly in [its] growth” in this capacity, according to the announcement.
