Microsoft, the backer of OpenAI, has trimmed its exclusive license to the AI start‑up, a shift that signals a competitive stance in the cloud arena. Under the revised deal, Microsoft keeps the right to use OpenAI’s models until 2032 but forfeits sole control, allowing the startup to partner with other cloud providers. The move follows pressure as OpenAI seeks broader access to compute power.

Microsoft’s stake in OpenAI values the venture at more than $135 billion, making the partnership a bet in the AI race. The new terms also remove a clause that would have altered the agreement if OpenAI achieved artificial general intelligence, a scenario that added uncertainty for the tech giant. Investors now see a path for Microsoft to balance risk while keeping a foothold.

Under the new arrangement, OpenAI will pay Microsoft a share of revenue when the tech giant serves its models through Azure, but Microsoft will no longer receive a share from cloud deployments. The change also grants OpenAI the right to launch products on competing platforms first, unless Microsoft can provide the necessary capabilities. This shift can reshape cloud service dynamics in the coming months.