Important news from last night and this morning (27/4-28/4)

Microsoft and OpenAI Revise Partnership Agreement, Exclusive Licensing and Revenue Sharing Arrangements Adjusted Simultaneously

Microsoft and OpenAI update their long-term cooperation framework, extending Microsoft’s licensing of OpenAI models and products until 2032, but changing from exclusive to non-exclusive. OpenAI products will still be prioritized on Azure, while also being available to other cloud service customers.

Revenue sharing arrangements also change

After revision, Microsoft will no longer pay revenue sharing to OpenAI; revenue sharing from OpenAI to Microsoft will continue until 2030, but with a total cap. Microsoft will still remain an important cloud partner and shareholder of OpenAI.

OpenAI’s cloud deployment scope expands

Following the agreement adjustment, OpenAI gains a larger cloud distribution space, no longer tied to a single platform. Microsoft states that OpenAI products will be prioritized on Azure but may also be offered to other cloud customers.

Market reacts to Microsoft’s stock price

After the announcement, Microsoft’s pre-market decline briefly widened to 4%. No further details about the financial terms of the new agreement have been disclosed by either side.

Summary

This revised agreement makes the partnership between Microsoft and OpenAI more flexible, also indicating that both parties are entering a new phase in cloud services and commercial revenue sharing.

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