Microsoft and OpenAI have restructured their landmark AI deal, reducing dependency on their exclusive cloud partnership. The revised agreement allows OpenAI to license its technology to other cloud providers while Microsoft loses exclusive rights to its models. This shift follows Microsoft’s $135bn stake in OpenAI, now the startup’s largest shareholder, and aims to accelerate OpenAI’s $852bn valuation ahead of a potential IPO. Under the new terms, OpenAI can now deploy products via competing platforms like Amazon Web Services, ending Microsoft’s monopoly on distribution.

The deal eliminates the “AGI Clause,” which previously restricted OpenAI’s tech sharing if it achieved artificial general intelligence. Microsoft retains a revenue-sharing agreement until 2030, capped annually, and will maintain non-exclusive licensing rights post-2032. Critics argue the changes create legal vulnerabilities, particularly with Elon Musk’s ongoing lawsuit alleging OpenAI deceived him over its shift to a for-profit model. Microsoft insists the revised partnership “simplifies collaboration” while granting OpenAI “global scalability.” The restructuring signals a strategic pivot toward independent growth for OpenAI, even as Microsoft faces regulatory scrutiny over its dominant AI infrastructure role.