OpenAI, Microsoft Update AI deal
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Learn more Microsoft and OpenAI have updated their partnership agreement, removing exclusivity rights that previously allowed the former to be the sole distributor of the AI models developed by the ChatGPT developer.
Things have changed since Microsoft and OpenAI announced a broad agreement following OpenAI's restructuring in October.
Microsoft said Monday it will no longer pay a share of its revenue to ChatGPT maker OpenAI, the latest move to untether a close partnership that helped unleash an artificial intelligence boom.
Microsoft has been investing in OpenAI for the past seven years, pouring $13.75 billion into the generative AI pioneer over that time as the two companies more tightly tied their AI futures to each other through various exclusivity deals.
OpenAI ended Microsoft’s exclusivity today with optimistic language, but the leaked memo from last week raised concerns about the partnership.
Microsoft and OpenAI’s amended deal loosens exclusivity, simplifies economics, and signals AI’s shift toward multi-cloud infrastructure.
OpenAI and Microsoft have long had a partnership regarding how the two entities do business with one another.