A New Chapter in the Microsoft and OpenAI Partnership

Microsoft and OpenAI have signed a new definitive agreement to strengthen their partnership that has continued since 2019. Through this agreement, OpenAI will convert into a Public Benefit Corporation (PBC) and undergo a recapitalization, with Microsoft holding approximately 27% of the equity in OpenAI Group PBC.

Both companies maintain the existing principle that until AGI (Artificial General Intelligence) is reached, Microsoft will retain exclusive IP rights and Azure API exclusivity as OpenAI's frontier model partner. However, any declaration of AGI must be verified by an independent panel of experts.

The key changes are as follows:

• Extended IP Rights: Microsoft's IP rights to models and products are extended through 2032, including models developed after AGI. However, Research IP will only be maintained until AGI verification or 2030, whichever comes first.
• Independence and Expansion: OpenAI can co-develop products with third parties, and non-API products can be served on other clouds as well. OpenAI may also release open weight models that meet certain criteria.
• Compute and Services: OpenAI has agreed to purchase an additional $250 billion in Azure services, and Microsoft no longer holds a right of first refusal over OpenAI's compute providers.
• Government Collaboration: OpenAI can provide API access to U.S. government national security customers regardless of cloud provider.