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Microsoft and OpenAI End Exclusive Partnership and Revenue Sharing Deal

Microsoft and OpenAI announced Monday they're ending their exclusive partnership and revenue sharing deal. Microsoft will no longer have exclusive rights to provide OpenAI's computing power and won't share revenue from selling OpenAI services on its Azure cloud platform.

April 28, 20263 sources2 min read

Microsoft and OpenAI are breaking up their exclusive business partnership after years of close collaboration. The two companies announced the change in a joint statement Monday.

Under the old deal, Microsoft had exclusive rights to provide computing power for OpenAI's AI models. Microsoft also shared revenue when it sold OpenAI services through its Azure cloud platform. Both arrangements are now ending.

The change means OpenAI can now work with other major tech companies like Amazon. OpenAI had been tied closely to Microsoft since the software giant invested billions in the ChatGPT maker.

Microsoft previously held a 27% stake in OpenAI through their partnership agreement. The companies haven't said how this ownership will change going forward.

The split reflects OpenAI's push to become more independent as it grows rapidly. The AI startup wants more flexibility to choose its business partners and technology providers.

Why this matters

This could change how AI tools like ChatGPT are priced and distributed. OpenAI can now partner with Amazon and other tech giants, which might lead to more AI options and competition for everyday users.

What to watch

Watch for OpenAI to announce new partnerships with Amazon or other cloud providers in coming months.

Sources
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This story was written with AI based on reporting from the sources above. For the complete story, visit the original sources.

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