Here’s how the new Microsoft and OpenAI deal breaks down

Microsoft and OpenAI have restructured their partnership to allow OpenAI multi-cloud distribution (including AWS), while Microsoft retains a 20% revenue share across all platforms, primary cloud partner status with first access to new models, and a non-exclusive license extended through 2032. This shift reduces Microsoft's competitive moat in AI services but provides financial upside from OpenAI's broader distribution, while the removal of AGI-contingency clauses eliminates long-standing partnership friction and positions Microsoft to reduce future dependency on OpenAI through its own AI development efforts. The deal reflects Microsoft's strategic pivot toward becoming less reliant on a single AI partner and more focused on owning its own AI capabilities.

Tom WarrenThe VergeApril 30, 20262 min read

Microsoft's relationship with OpenAI has always been complicated, so I expected the close partnership-turned-situationship to end in tears. After all, executive disagreements, rearranged contracts, and frustrations over AI infrastructure have all regularly been part of the partnership, creating plenty of tension along the way. But against all odds, Microsoft and OpenAI divorced this week in a way that looks strangely amicable. Microsoft announced the updates to its long-standing OpenAI deal on Monday, with the most important change allowing OpenAI to make its products and services available across all cloud providers. A day later, OpenAI an … Read the full story at The Verge.