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Microsoft and OpenAI Change Their Deal
Microsoft and OpenAI have changed how they work together. Microsoft is OpenAI's biggest financial partner.
Under the new deal Microsoft will no longer be OpenAI's only licensee. Microsoft will keep licensing OpenAI's technology until 2032.
Microsoft will stop sharing its revenue with OpenAI. But OpenAI will keep paying Microsoft a 20% share until 2030.
The new deal gives OpenAI more freedom in how it runs its business. Microsoft stays as OpenAI's main cloud provider.
OpenAI products will still launch first on Microsoft's Azure platform. Reports say the deal also removes old rules tied to AGI milestones.
Klear Note — Microsoft has invested billions in OpenAI since 2019. OpenAI makes AI technology like ChatGPT. This deal change gives OpenAI more business freedom.
Key Terms 4
- licensee
- A company allowed to use another company's technology legally
- revenue share
- A portion of money earned that is paid to a partner
- Azure
- Microsoft's cloud computing platform used to run software online
- AGI
- Artificial General Intelligence — AI as smart as a human