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Microsoft Stock Price Drops Sharply After OpenAI Revises Partnership

Microsoft Stock Price Drops Sharply After OpenAI Revises Partnership

OpenAI CEO Sam Altman said that the company has updated its partnership with Microsoft (MSFT), ending Azure cloud exclusivity and clearing OpenAI to sell products across competing providers.

Microsoft stock slipped on the news, with traders citing the loss of an Azure-only edge for OpenAI’s flagship artificial intelligence (AI) products.

Per Altman’s post, Microsoft remains OpenAI’s primary cloud partner, but the license is now non-exclusive. OpenAI can offer models through Amazon Web Services, Google Cloud, Oracle, and other rivals.

The terms keep cash flowing both ways. OpenAI will supply Microsoft with models through 2032 and pay a revenue share to its largest backer through 2030.

Microsoft will no longer pay a…

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