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OpenAI, Microsoft drop AGI clause, end exclusivity in new deal
28 Apr 2026

Microsoft and OpenAI have officially terminated their "AGI clause," a key component of their long-standing partnership.

The move comes as part of a broader set of changes announced by Microsoft on Monday morning.

The AGI clause was a revenue-sharing agreement that would have continued until the point where either company achieved artificial general intelligence (AGI), an industry term for AI systems that match or exceed human intelligence across multiple tasks.

OpenAI free to pursue enterprise customers
Partnership details

Under the revised terms, Microsoft will continue to be OpenAI's "primary cloud partner," with its products launching first on Azure.

However, OpenAI is now free to offer all its products across any cloud provider.

This change allows OpenAI to pursue enterprise customers and potentially work with competitors like Amazon or Google.

The new agreement also modifies the revenue-sharing arrangement, which will now only continue through 2030 at the same percentage but subject to a total cap.

Microsoft's IP rights extended but now non-exclusive
IP rights

The revised agreement also extends Microsoft's intellectual property (IP) rights for OpenAI's models and products through 2032.

However, these rights are now non-exclusive, meaning other competitors can also access them.

This change comes as OpenAI focuses on enterprise and coding to boost potential revenue streams while cutting out less important projects.

Market reaction to revised partnership
Market impact

Following the announcement of the revised partnership, Microsoft's shares fell nearly 3% while Alphabet and Amazon saw slight gains.

The market reaction indicates investor concerns over the changes in Microsoft's exclusive hold over OpenAI's technology.

Despite the changes in their partnership, Microsoft remains a major shareholder in OpenAI as the ChatGPT-maker prepares to go public in the coming months.