Microsoft and OpenAI Revise Partnership, Ending Exclusive Cloud Sales Agreement
By
Matt Day
Toasted just enough. A reliable bake, gently seasoned.
Summary
Microsoft and OpenAI have revised their partnership agreement, dropping Microsoft's exclusive right to sell OpenAI's AI models. This change allows OpenAI to pursue deals with competing cloud providers like Amazon. In exchange, Microsoft will no longer pay a revenue share on OpenAI products it resells through its cloud services. The revised deal was announced in a joint statement on Monday.
Key quotes
· 3 pulledMicrosoft Corp. and OpenAI have agreed to drop the software giant's exclusive right to sell the startup's AI models, opening the door for the ChatGPT maker to pursue deals with cloud-computing rivals like Amazon.com Inc.
In exchange for ending that exclusivity — which helped boost Microsoft's cloud sales in the early years of the AI boom — the world's largest software maker will no longer pay a revenue share on OpenAI products it resells on its cloud.
The two companies announced the revised deal in a joint statement on Monday.
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