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OpenAI and Microsoft said on April 28 that they have renegotiated their collaboration agreement, addressing legal issues related to Amazon's investment of up to $50 billion. Under the new agreement, Microsoft will no longer have exclusive rights to all OpenAI products and intellectual property until AGI is achieved. Instead, Microsoft is granted a non-exclusive right to use OpenAI's models and products through 2032. Microsoft remains OpenAI's 'primary cloud computing partner', meaning most of the company's infrastructure will continue to run on Azure. OpenAI's products will be deployed 'first' on Azure, unless Microsoft cannot or chooses not to support the required capabilities. A notable point is that OpenAI can now offer products on multiple cloud platforms, instead of being bound by exclusivity as before. This helps remove the risk that Microsoft could sue OpenAI regarding the Amazon agreement. Earlier, in February, Amazon announced plans to invest up to $50 billion in OpenAI, consisting of $15 billion upfront and the remainder contingent on undisclosed conditions. The two sides also agreed to develop the 'stateful runtime' technology on AWS Bedrock — technology that allows the AI system to remember context over long periods. However, OpenAI's plan to provide Amazon with exclusive rights to certain AI tools had clashed with a previous agreement with Microsoft, which allowed Microsoft to have exclusive rights to OpenAI products accessed via API. Microsoft at the time rejected the possibility of AWS exclusivity and, according to the Financial Times, had even considered legal action. The new agreement removes Microsoft's exclusive rights, thereby ending the dispute risk. Nevertheless, Microsoft still benefits from not having to share revenue with OpenAI, while OpenAI continues to share revenue with Microsoft through 2030, with a specified cap. Microsoft currently holds about 27% of the shares in the profit-generating OpenAI business unit, and continues to benefit from the company's growth.
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