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Microsoft cuts OpenAI revenue share in a fresh step to loosen their AI alliance
The revised pact lets OpenAI work with Amazon Web Services and other cloud providers while Microsoft keeps first access to new products on Azure.
- On Monday, Microsoft and OpenAI announced an amended agreement to "simplify" their partnership, making Microsoft's license non-exclusive and ending Microsoft's revenue-share payments to OpenAI. Microsoft remains the primary cloud partner, with products shipping first on Azure.
- Previously, the partnership granted Microsoft exclusive rights, but the companies modified terms to allow OpenAI to serve products across any cloud provider. This shift follows OpenAI's corporate restructuring roughly 6 months ago.
- OpenAI will continue paying Microsoft a capped revenue share through 2030, payments now "independent of OpenAI's technology progress." This change removes prior conditions linking revenue payments to whether OpenAI reached AGI.
- MSFT stock briefly tumbled just shy of $400 following the announcement, though Wedbush analyst Dan Ives called the deal a net positive. He added, "We believe this puts OpenAI on a strong path forward to going public."
- While Microsoft retains a license to OpenAI IP through 2032, OpenAI now has the green light to work with Amazon Web Services. This strategic evolution positions both companies to pursue new opportunities.
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Microsoft and OpenAI's open relationship is now official
No. More. Exclusivity. Redmond keeps the ring until 2032, but OpenAI is free to see other clouds Once tied tightly together, Microsoft and OpenAI have amended their agreement, making the Windows giant's license non-exclusive. In exchange, Microsoft will no longer owe OpenAI a revenue share.…
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wiwo.de
Microsoft has so far been able to rapidly expand its products with AI through the agreement with OpenAI. In the future, the ChatGPT developer will also be able to sell its technologies through the competition.
·Düsseldorf, Germany
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Microsoft cuts OpenAI revenue share in a fresh step to loosen their AI alliance
Microsoft said Monday it will no longer pay a share of its revenue to ChatGPT maker OpenAI, the latest move to untether a close partnership that helped unleash an artificial intelligence boom.
·United States
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Total News Sources36
Leaning Left6Leaning Right2Center12Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 30%
C 60%
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