"The work we’re doing together remains ambitious": OpenAI ends Microsoft exclusivity in a tone that doesn’t match last week’s leaked memo

Microsoft and OpenAI remain close partners, but today’s update ends exclusivity. (Image credit: Getty Images | CFOTO)

Microsoft no longer has exclusivity with OpenAI. Following a change to the agreement between the two companies, Microsoft will be the primary cloud partner for OpenAI, but OpenAI can work with other companies if Microsoft cannot, or chooses not to, "support the necessary capabilities" of OpenAI.

Microsoft will continue to have a license for OpenAI models through 2032, but the license is now non-exclusive.

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Microsoft remains OpenAI’s primary cloud partner, and OpenAI products will ship first on Azure, unless Microsoft cannot and chooses not to support the necessary capabilities. OpenAI can now serve all its products to customers across any cloud provider.
Microsoft will continue to have a license to OpenAI IP for models and products through 2032. Microsoft’s license will now be non-exclusive.
Microsoft will no longer pay a revenue share to OpenAI.
Revenue share payments from OpenAI to Microsoft continue through 2030, independent of OpenAI’s technology progress, at the same percentage but subject to a total cap.
Microsoft continues to participate directly in OpenAI’s growth as a major shareholder.

Microsoft shared a nearly identical statement on its website.

OpenAI refers to the altered partnership as a simplification, though I suspect analysts will view things differently. Microsoft and OpenAI have a rocky relationship that has gotten progressively less exclusive over time.

Sam Altman and Satya Nadella on stage — OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella have presented side-by-side on stage and been on a podcast together in recent years. (Image credit: Getty Images | Justin Sullivan)

Microsoft played a major factor in OpenAI's initial growth, contributing financially and with compute power. OpenAI also benefited from having the backing of one of the largest tech companies on the planet.

Sam Altman, the co-founder and CEO of OpenAI, has Microsoft to thank for his current position. Microsoft CEO Satya Nadella was reportedly furious when blindsided by Altman's firing in November 2023. That curious saga ended with Microsoft holding a non-voting seat on the OpenAI board and Altman back as CEO.

we have updated our partnership with microsoft.microsoft will remain our primary cloud partner, but we are now able to make our products and services available across all clouds.will continue to provide them with models and products until 2032, and a revenue share through…April 27, 2026

Grey clouds have hovered over Microsoft and OpenAI's partnership for years. In March, Microsoft was reportedly considering legal action against OpenAI because of Amazon's $50 billion deal with OpenAI.

OpenAI's statement does not mention that potential legal action, but given that the updated partnership mentions exclusivity specifically, there's a chance OpenAI and Microsoft have smoothed things over.

OpenAI's leaked memo

OpenAI and Microsoft logos on a cracked screen — Microsoft is a major investor in OpenAI and a close partner. The two companies are also competitors with a tumultuous relationship. (Image credit: Windows Central)

The timing of this announcement is interesting. Late last week, a leaked memo by OpenAI revenue chief Denise Dresser said OpenAI's partnership with Microsoft "has been foundational to our success." But she added that the same partnership "has also limited our ability to meet enterprises where they are."

The memo also said that OpenAI's demand from customers "has been frankly staggering" since OpenAI came to a $50 billion agreement with Amazon in February.

Microsoft and OpenAI have had a rocky relationship for a while. The two both work together and compete, creating a unique dynamic.

Distracted boyfriend meme featuring Microsoft and OpenAI — OpenAI and Microsoft have become less exclusive progressively by updating their partnership. (Image credit: Microsoft | OpenAI | Edited with Gemini)

OpenAI's Sam Altman has complained about Microsoft's ability to meet cloud computing needs, though OpenAI has reportedly sorted its computing needs.

Despite the tension, Microsoft and OpenAI came to an agreement in October 2025 that covered Microsoft's IP rights and exclusivity with OpenAI. That agreement has since changed however, and evolved into the current form OpenAI detailed today.

Microsoft is also working on its own models, which could potentially free the tech giant to ditch OpenAI.

For the moment, Microsoft and OpenAI will continue to work together. The statements from the companies say, "the work we’re doing together remains ambitious."

Considering Microsoft and OpenAI have amended their partnership before and continue to be at odds in several areas, more changes could come in the future.

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Sean Endicott is a news writer and apps editor for Windows Central with 11+ years of experience. A Nottingham Trent journalism graduate, Sean has covered the industry’s arc from the Lumia era to the launch of Windows 11 and generative AI. Having started at Thrifter, he uses his expertise in price tracking to help readers find genuine hardware value.

Beyond tech news, Sean is a UK sports media pioneer. In 2017, he became one of the first to stream via smartphone and is an expert in AP Capture systems. A tech-forward coach, he was named 2024 BAFA Youth Coach of the Year. He is focused on using technology—from AI to Clipchamp—to gain a practical edge.