Microsoft and OpenAI End 7-Year Azure Exclusivity in Partnership Overhaul

Microsoft and OpenAI announced a sweeping restructure of their partnership on April 27, 2026, dismantling the Azure exclusivity arrangement that has defined their relationship since 2019.

Key Changes

Cloud exclusivity ends: OpenAI can now deploy products on Amazon Web Services and Google Cloud. Azure retains first-right-of-refusal status, but OpenAI has flexibility if Microsoft cannot support a given capability.

Revenue share restructured: Microsoft will no longer pay revenue share to OpenAI. OpenAI continues paying Microsoft through 2030 at the same rate, but subject to a total cap.

IP license updated: Microsoft's license to OpenAI technology extends through 2032 but converts from exclusive to non-exclusive.

Multi-Cloud in Action

The day after the announcement, OpenAI confirmed that GPT-5.5, Codex, and Managed Agents are now available on AWS Bedrock — the immediate first step under the new multi-cloud terms.

The restructure is the most significant change to the Microsoft-OpenAI relationship since the original $1 billion investment in 2019. Both companies said the new terms provide "long-term clarity" while preserving Microsoft's preferred-partner position.

What Microsoft Gets

Microsoft sheds its revenue-share payment obligation while retaining equity upside in OpenAI and keeping Azure as the primary, first-served infrastructure provider through the early 2030s. The deal also frees Microsoft to invest more aggressively in competing AI labs without breaching exclusivity terms.

Source: OpenAI Blog, Microsoft Blog