Microsoft Corporation (NASDAQ:MSFT) shares are trading lower Monday after its AI partner OpenAI announced amended terms of their ongoing relationship that increases flexibility.
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Amended Agreement Highlights
Under the amended agreement, Microsoft will remain OpenAI’s primary cloud partner, with OpenAI products set to launch first on Azure unless Microsoft is unable or chooses not to support required capabilities. However, OpenAI will now have the ability to serve its products across any cloud provider.
Microsoft will continue to hold a license to OpenAI’s intellectual property for models and products through 2032, though the license will now be non-exclusive, according to the updated terms.
The revised terms also remove Microsoft’s obligation to pay a revenue share to OpenAI. OpenAI will continue making revenue share payments to Microsoft through 2030 at the same percentage, subject to a total cap. And Microsoft will also maintain its position as a major shareholder in OpenAI.
The companies said the amended agreement is designed to simplify the partnership while providing greater predictability and flexibility to pursue new opportunities and scale AI platforms.
“From scaling gigawatts of new datacenter capacity, to collaborating on next- generation silicon, to applying AI to advance cybersecurity, and more, we’re excited to keep partnering to advance and scale AI for people and organizations around the world,” OpenAI said in a blog post.
MSFT Shares Edge Lower Monday
MSFT Price Action: At the time of writing, Microsoft shares are trading 1.01% lower at $420.38, according to data from Benzinga Pro
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