Microsoft and OpenAI Revise Deal, Ending Microsoft’s Revenue-Sharing Payments and Changing Technology License

Microsoft invested $1 billion in OpenAI in 2019 and later committed about $13 billion in total, with Azure serving as the primary cloud platform and model sales channel. As OpenAI expanded its partnerships with Amazon, Google and Oracle, the existing exclusive licensing and two-way revenue-sharing arrangements constrained its ability to deploy capital and became a key consideration in preparations for an IPO.

Microsoft and OpenAI announced a revised agreement on April 27, 2026. Microsoft will stop making revenue-sharing payments to OpenAI, while OpenAI will continue sharing revenue with Microsoft at the original rate through 2030. Microsoft’s technology license was extended through 2032 and made non-exclusive. A May 13 report further disclosed that total revenue-sharing payments would be capped at $38 billion, $97 billion below the previous estimate of $135 billion.