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Microsoft, OpenAI Restructure Partnership

Microsoft, OpenAI Restructure Partnership

Microsoft and OpenAI have amended their partnership agreement, simplifying the structure while introducing greater flexibility around licensing and revenue sharing.

Under the revised terms, Microsoft’s license to OpenAI’s technology becomes non-exclusive, and the company will no longer pay a revenue share to OpenAI. At the same time, Microsoft remains OpenAI’s primary cloud partner, with OpenAI products continuing to launch first on Azure. Microsoft also retains access to OpenAI’s intellectual property for models and products through 2032, while revenue-sharing payments from OpenAI to Microsoft will continue through 2030.

“While this amendment simplifies the partnership, the work we’re doing together remains ambitious,” Microsoft said. “From scaling gigawatts of new datacenter capacity, to collaborating on next-generation silicon, to applying AI to advance cybersecurity, and more, we’re excited to keep partnering to advance and scale AI for people and organizations around the world.”

Microsoft will also continue to participate in OpenAI’s growth as a major shareholder. The amendment follows a prior update to the partnership in late 2025.

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About Joe Palmisano

Joe Palmisano is editorial director of Connect Money, where he oversees daily coverage of alternative assets, direct investments, financial advisory and the economy. He brings three decades of experience as a financial journalist, analyst and portfolio manager. Before joining Connect Money, Palmisano wrote for The Wall Street Journal, covering foreign exchange, global fixed-income and equity markets. He later served as a senior research analyst and portfolio manager, producing market analysis and managing foreign exchange and U.S. equity portfolios for FX Concepts. His work has also appeared in SFO Magazine and CMT Association publications. Palmisano earned a bachelor’s degree in finance from The American University and holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.