Key Facts on Microsoft and OpenAI Partnership
Microsoft has significantly expanded its partnership with OpenAI, having initially invested $1 billion in 2019, followed by an additional $12 billion. This arrangement granted Microsoft a 27% stake in OpenAI’s for-profit subsidiary and exclusive access to its AI technologies, solidifying Microsoft as the sole cloud provider through Azure.
In late April 2023, the companies transitioned to a new agreement in response to Amazon‘s $50 billion investment in OpenAI, which could have conflicted with Microsoft’s exclusivity. The updated deal allows OpenAI to monetize its AI models through any cloud provider while Microsoft will retain a 20% revenue share from Azure customers purchasing ChatGPT subscriptions.
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