Microsoft Keeps Royalty-Free OpenAI Access Through 2032 as Exclusivity Ends

Overview

• Satya Nadella said Microsoft retains IP rights to OpenAI’s frontier model through 2032 and that the company plans to exploit that access.
• The revised pact ended Microsoft’s exclusive grip on OpenAI technology, and OpenAI soon announced new products with Amazon Web Services.
• Nadella said Microsoft no longer has to pay OpenAI for access to its models and agent products under the reset terms.
• Microsoft reported its AI business at a $37 billion annual revenue run rate, up 123% year over year, in its latest earnings.
• Nadella called OpenAI a large Azure customer and noted Microsoft’s equity stake, pointing to cloud usage and ownership as ongoing sources of value.