Microsoft and OpenAI End Cloud Exclusivity, Remove AGI Clause

Microsoft and OpenAI amended their partnership Monday, ending Microsoft’s exclusive cloud license and removing contract language tied to an artificial general intelligence (AGI) declaration. Most revenue-sharing provisions were eliminated, while certain payments are scheduled to continue through 2030.

Under the revised agreement, Microsoft retains a license to OpenAI’s models and products through 2032 and keeps an equity stake in the company valued at more than $135 billion. OpenAI can now offer its services on any cloud provider rather than routing workloads exclusively through Microsoft.

The amendment strips a contingency that would have changed terms if OpenAI had declared it had reached AGI. The companies said the changes take effect immediately and described the restructuring as an update to a long-standing collaboration.

The partnership adjustment follows moves by both firms to broaden AI ties. Microsoft has begun buying models from other vendors, including Anthropic, and launched a tool that pairs models from different developers. OpenAI completed a large funding round in February that included Amazon, SoftBank and Nvidia.

Market indicators showed little reaction to the announcement. Microsoft shares traded about 0.3% lower on Monday at roughly $423 per share. On private-share trading platforms, Anthropic was trading near an implied $1 trillion valuation and OpenAI near $880 billion.

The revised terms preserve a framework for joint research, engineering and product work while giving OpenAI operational freedom to move workloads across multiple cloud providers. In a joint statement, the companies wrote they continue to work closely across research, engineering and product development, building on years of collaboration and shared success.