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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 for Connect Money, where he brings nearly three decades experience of market insights as a financial journalist, analyst and senior portfolio manager for leading financial publications, advisory firms, and hedge funds. In his role as Editorial Director, Joe is responsible for the selection of content and creation of daily business news covering the financial markets, including Alternative Assets, Direct Investment and Financial Advisory services. Before joining Connect Money, Joe was a financial journalist for the Wall Street Journal, regularly publishing feature stories and trend pieces on the foreign exchange, global fixed income and equity markets. Joe parlayed his experience as a financial journalist into roles as a Senior Research Analyst and Portfolio Manager, writing daily and weekly market analysis and managing a FX and US equity portfolio. Joe was also a contributing writer for industry magazines and publications, including SFO Magazine and the CMT Association. Joe earned a B.S.B.A. in Finance from The American University. He holds the Chartered Market Technician (CMT) designation and is a member of the CFA Institute.

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