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OpenAI Updates Microsoft Deal to Enable Multi-Cloud Distribution and Limit Revenue Sharing
OpenAI updated its agreement with Microsoft, ending cloud exclusivity and enabling deals with Amazon and others. The change removes an AGI trigger clause and adjusts revenue terms through 2032. Related AI developments include missed targets, a new smartphone project, and trademark filings amid AI concerns.
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The updated deal caps Microsoft's share of OpenAI revenue at 20% until 2030, with an undisclosed limit, and eliminates a provision that would alter the relationship upon achieving artificial general intelligence. Microsoft retains non-exclusive intellectual property rights to OpenAI's products, excluding research, through 2032, while OpenAI must deploy models first on Azure.
Microsoft no longer shares revenue from serving OpenAI models via Azure with the startup. Amazon CEO Andy Jassy stated on X on Monday that Amazon is excited to make OpenAI's models available directly to customers on Bedrock in the coming weeks.
Amazon and OpenAI previously discussed collaborating on a new AI system outside the prior exclusive Microsoft deal. The previous revisions to the Microsoft-OpenAI relationship were announced in October.
Google is examining the revised OpenAI-Microsoft deal terms, according to a source familiar with the situation. OpenAI expects an initial public offering later in 2026. OpenAI CEO Sam Altman stated that the company updated its partnership with Microsoft, with Microsoft remaining the primary cloud partner but OpenAI now able to make products available across all clouds.
OpenAI will provide models and products to Microsoft until 2032. Separately, OpenAI is building a smartphone described as an AI agent phone. OpenAI missed its 2025 revenue target for ChatGPT. OpenAI missed its goal of reaching 1 billion weekly users by the end of 2025.
OpenAI CFO Sarah Friar has reportedly told about the struggles.
OpenAI recently missed its own targets for new users and revenue. 5 trillion in commitments cannot be paid. In related AI developments, Taylor Swift's company TAS Rights Management filed three trademark applications on April 24, 2026.
Matthew McConaughey launched a similar trademark strategy. More than 600 Google employees signed a letter urging the CEO to reject classified AI work with the Pentagon. Anthropic was banned in military work earlier in 2026.
