Microsoft’s stock was what people were watching Monday because of this change to the OpenAI deal; the payment of a percentage of revenue to OpenAI is gone, and the license to OpenAI’s inventions is now non-exclusive until 2032. The stock, which had gone up 2% on Friday, opened about 1% lower as investors thought about how much of a lead Microsoft has in AI before Microsoft’s earnings report on Wednesday.
The updated agreement means OpenAI’s products will initially appear on Azure when possible, but OpenAI can also sell them on other cloud platforms. Microsoft loses being the only one with access, but the companies will still work very closely together as they both build more data centers, create new computer chips, and use AI for things like protecting against cyberattacks.
What changed in the Microsoft-OpenAI deal
Microsoft says this change makes the partnership simpler, and their ambitions are still big. Importantly, Microsoft’s permission to use OpenAI’s models and products now isn’t exclusive until 2032, ending a key advantage Microsoft had from being able to get to and use the technology first.
OpenAI can now provide all of its products to customers on any cloud provider. Microsoft is still a large owner of OpenAI and will continue to be directly involved in OpenAI’s success.
Here are the headline changes investors are watching closely:
– Microsoft’s licence becomes non-exclusive through 2032
– No more Microsoft revenue share payments to OpenAI
– OpenAI retains revenue share payments to Microsoft through 2030
– OpenAI products can ship across any cloud provider
– Azure remains the first ship destination, where supported
Cloud alignment and product rollout
Microsoft will remain OpenAI’s most important cloud partner and OpenAI’s products will be launched on Azure first, unless Microsoft doesn’t or chooses not to provide the features needed. This means Azure will still be at the center of OpenAI’s business being released to the public, even as OpenAI starts offering things on Amazon and Google’s clouds.
The two companies emphasized what they are doing operationally: adding many gigawatts of new data center capacity and working together on the next generation of computer chips. Both describe this update as a simplification, not a step back from their shared goals in AI.
Money flows and timelines
Under the revised agreement, Microsoft won’t pay OpenAI a share of the money it makes. However, OpenAI will continue to pay Microsoft a percentage of their revenue until 2030, at the same rate as before, with a maximum amount and not depending on how well OpenAI’s technology does.
Microsoft’s non-exclusive license for OpenAI’s technology lasts until 2032 and gives them continued access to the models and products. They also remain a major shareholder. Since 2019, the two have worked together to develop AI in a responsible way and to make the benefits of AI available to more people.
Microsoft said in February 2026 that it had exclusive rights to the technology and that working with other cloud providers was something they were thinking about. They also said the revenue-sharing agreement included using other clouds. Monday’s change to the agreement replaces that exclusivity.
Market reaction and near-term catalysts
The new terms remove a significant benefit of being the only one, and Microsoft’s stock price fell by about t% in early trading Monday. It was at $421 recently, down 12% for the year, but up 8.5% over the last year, which focuses new attention on what will make Microsoft grow, as earnings are about to be reported.
Investors will want to see that Azure’s growth can speed up again and that Microsoft is clearly making money from AI. They’ll also be looking at how many people are using Copilot and how much it adds to Microsoft’s income and profits, because people are watching how much of a return they get on their money spent on AI.
What to watch on Wednesday
Jay Woods, chief market strategist at Freedom Capital Markets, said that people were expecting too much after Microsoft’s highest price in October. He also said that Azure has grown at a good rate, but not enough to make up for the recent problems with software company stocks.
Woods said two things to look for in the earnings report: Azure’s growth speeding up and Copilot making a significant contribution. He said the stock is now close to where it was when the market opened after the last earnings report and the market will look for Microsoft to tell a different story.
