OpenAI ends Microsoft legal peril over its $50B Amazon deal

On Monday, Microsoft and OpenAI announced that they have, once again, renegotiated the deal binding the two companies. Despite some opinions on X that frame it as a victory for the ChatGPT maker over the Windows giant, both sides are walking away winners. Most important, the new terms solve an issue that was hanging over OpenAI’s head since it signed its up-to-$50 billion dollar deal with Amazon. With this new deal, instead of Microsoft having exclusive access to all of OpenAI’s products and IP until the magical day when OpenAI produces AGI, it’s partnership has a definitive timeline. This contract gives Microsoft a non-exclusive license to OpenAI IP for models and products through 2032. The two companies are still calling Microsoft OpenAI’s “primary cloud partner,” meaning that the bulk of OpenAI’s cloud will likely be served by Azure for the six years this deal covers, even as OpenAI rushes to build its own data centers with other partners. In October , OpenAI agreed to buy an additional $250 billion worth of Microsoft’s cloud. This line is a message to Microsoft shareholders that OpenAI will still be an enormous Azure customer. OpenAI products will ship “first on Azure, unless Microsoft cannot and chooses not to support the necessary capabilities,” the companies say. …