Microsoft and OpenAI: Evolving Partnership and Expanding Computing Capabilities

In January 2025, Microsoft and OpenAI announced a revision of their partnership terms, giving OpenAI the ability to use computing resources from other vendors while maintaining key elements of cooperation with Microsoft.

New terms of cooperation

Under the updated agreement, which will last until 2030, OpenAI can now use computing resources from third-party suppliers, while Microsoft retains the right of first refusal (ROFR) to provide such resources. This change allows OpenAI to expand its research and training capabilities beyond the Microsoft Azure infrastructure.

Preserving key aspects of the partnership

Despite the adjustments made, the basis of the partnership remains unchanged: Microsoft continues to have exclusive rights to integrate OpenAI technologies into its products, such as Copilot, and the OpenAI API remains exclusive to Azure. The two companies maintain a mutually beneficial revenue-sharing agreement, where Microsoft receives 20% of OpenAI's revenue.

Reasons for changes in the partnership

The decision to revise the terms of cooperation was driven by OpenAI's need to increase computing power to develop and train its models. Earlier, some shareholders expressed concern that Microsoft was not providing the necessary resources in sufficient volume and at the required speed, which prompted OpenAI to enter into a partnership agreement with Oracle in June 2024.