tech
April 27, 2026
OpenAI ends Microsoft legal peril over its $50B Amazon deal
OpenAI has won major concessions from its largest shareholder, Microsoft, that will allow it to sell products on AWS, while Microsoft gets more cash in a revenue-share agreement.
TL;DR
- Microsoft and OpenAI have renegotiated their partnership deal.
- The new terms give Microsoft a non-exclusive license to OpenAI's intellectual property through 2032.
- OpenAI can now serve its products to customers across any cloud provider, including AWS.
- This resolves a potential legal conflict over OpenAI's exclusive deal with Amazon for certain technologies.
- Microsoft will no longer pay a revenue share to OpenAI, while OpenAI will continue to pay Microsoft through 2030, subject to a cap.
- Microsoft remains a major shareholder in OpenAI, with approximately 27% ownership of the for-profit entity.
- Enterprises are seen as the biggest winners, gaining more choice in models and cloud providers.
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