As part of an investment announced earlier this year, the Amazon unit said it was jointly developing products with OpenAI that would be hosted on AWS. Microsoft weighed legal action, on the view that the effort would almost certainly breach its exclusive rights to OpenAI\u2019s intellectual property, the Financial Times reported last month.<\/p>\n
Microsoft remains OpenAI\u2019s \u201cprimary cloud provider\u201d and new products from the startup will be made available first on Azure, Microsoft\u2019s cloud unit.<\/p>\n
Revenue share paid by OpenAI on sales of its products that it makes itself will be capped, the companies said. But until they reach that cap \u2013 which wasn\u2019t disclosed \u2013 the revised deal brings more certainty that OpenAI will continue to send those cheques.<\/p>\n
Microsoft will receive a revenue share from OpenAI through 2030, regardless of progress the startup makes toward its goal of building artificial general intelligence \u2013 a system capable of matching human capability across tasks. Under the prior agreement, revenue share payments were due to stop should OpenAI reach that milestone.<\/p>\n
As part of OpenAI\u2019s restructuring last year as a for-profit business, Microsoft received a 27% ownership stake in the AI startup. The software giant was a key holdout in OpenAI\u2019s corporate overhaul as the two negotiated the complex terms of their partnership.<\/p>\n
Microsoft\u2019s relationship with OpenAI is set to be in the spotlight this week as the companies square off against Elon Musk in court. The billionaire has accused OpenAI of abandoning its founding principles by converting to a for-profit company with billions of dollars in support from Microsoft. He\u2019s seeking as much as US$134 billion in damages from OpenAI and Microsoft.<\/p>\n
Microsoft shares were down about 1% as the markets opened in New York this week. Amazon fell less than 1%.<\/p>\n
\u201cWe do not believe this revised agreement should come as a major surprise to investors at this point,\u201d analysts with Evercore ISI wrote in a note to clients. \u201cMicrosoft has increasingly signalled interest in a broader multi-model strategy, while OpenAI has clear incentives to expand distribution more broadly across the market.\u201d<\/p>\n
Sign up to Herald Premium Editor\u2019s Picks<\/a>, delivered straight to your inbox every Friday. Editor-in-Chief Murray Kirkness picks the week\u2019s best features, interviews and investigations. Sign up for Herald Premium here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"As part of an investment announced earlier this year, the Amazon unit said it was jointly developing products…\n","protected":false},"author":2,"featured_media":400438,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[3469,365,206645,363,364,38501,4036,68160,45435,868,6259,38402,1017,4975,71,2734,305,420,13840,13106,609,5289,111,139,69,620,10521,205439,84888,9979,9424,13311,8183,1046,145,102],"class_list":["post-400437","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-agreed","tag-ai","tag-amazoncom","tag-artificial-intelligence","tag-artificialintelligence","tag-breaks","tag-chatgpt","tag-cloudcomputing","tag-corporation","tag-deals","tag-door","tag-drop","tag-exclusive","tag-free","tag-from","tag-giants","tag-have","tag-inc","tag-like","tag-maker","tag-microsoft","tag-models","tag-new-zealand","tag-newzealand","tag-nz","tag-openai","tag-opening","tag-pact","tag-pursue","tag-right","tag-rivals","tag-sell","tag-software","tag-startups","tag-technology","tag-with"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/400437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=400437"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/400437\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/400438"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=400437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=400437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=400437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}