OpenAI and Microsoft say they “signed a non-binding memorandum of understanding for the next phase of our partnership”, and are working to finalize the terms

OpenAI and Microsoft said Thursday they have reached preliminary terms on a revised partnership and are “actively working to finalize” a definitive agreement.

Axios 2025-09-12 Ina Fried

Context & Ripple Effects

The memorandum follows reporting that the partners were negotiating ownership and technology-access terms tied to a possible future IPO, while an earlier account described a relationship strained by OpenAI’s demand for more computing capacity and Microsoft’s in-house model work. IPO-related negotiations and the earlier strain over compute and model strategy made a revised framework consequential for both companies.

Later coverage of the finalized arrangement describes OpenAI gaining freedom to serve products across cloud providers and Microsoft retaining model access through 2032, showing that this preliminary document was part of a broader reset of exclusivity, economics and IP rights. the subsequent multi-cloud amendment

First-order effects

OpenAI and Microsoft now have a shared preliminary framework, but the partnership’s operative terms remain unsettled until a definitive agreement is completed.
Both companies can continue negotiating from a stated mutual commitment rather than an openly unresolved dispute, with the eventual agreement determining their commercial and technology-access obligations.

Second-order effects

Customers and cloud partners remain unable to rely on any changed distribution or hosting rights until final terms are disclosed; the memorandum itself does not alter product availability.
The talks put pressure on both companies to reconcile Microsoft’s need for durable access to OpenAI technology with OpenAI’s push for organizational and commercial flexibility, issues central to the earlier IPO negotiations.

Third-order effects

If similar revisions continue, leading AI lab–cloud partnerships may shift from tightly coupled, exclusive arrangements toward contracts that separate investment, cloud distribution, model access and IP rights.
The later removal of an AGI-linked IP provision suggests that governance triggers embedded in AI infrastructure deals can become a central competitive and contractual issue as labs seek greater independence. the later change to AGI-linked IP rights

The trend: This is one step in the restructuring of AI lab–cloud alliances from singular strategic partnerships into more modular arrangements balancing capital, compute, distribution and autonomy.

Discussion

@shaunralston Shaun Ralston on x
This structure reaffirms that @OpenAI's core mission remains to ensure that AGI benefits all of humanity. https://openai.com/...
@luke_metro @luke_metro on x
It's cool how OpenAI has its own version of a situationship
@signulll @signulll on x
this is like a couple that can't stand each other anymore & dad's been exiled to the garage but they're still stuck together because of that sweet 2% mortgage.
@aaronpholmes Aaron Holmes on x
OpenAI and Microsoft have reached a tentative deal, and OpenAI says its nonprofit will get a stake of over $100 billion, or 20%, in the new for-profit. That implies Microsoft's stake would be worth at least $165 billion on paper, based on previously reported figures. [image]
@mgsiegler M.G. Siegler on x
Some quick cap table math could be: Microsoft: 33% Non-Profit: 25% SoftBank: 12% Which nicely adds up to 70%.
@patrickmoorhead Patrick Moorhead on x
I asked ChatGPT 5 to help me figure out the OpenAI-Microsoft structures. Here's what I got back. [image]
@theaustinlyons Austin Lyons on x
$MSFT and OpenAI are (re)defining the relationship [image]
@rustybrick Barry Schwartz on x
And Microsoft and OpenAI seems to have worked out their differences - OpenAI ready to restructure?
@mgsiegler M.G. Siegler on x
Attention everyone: Just so you know, we have reached a tentative agreement to reach an agreement.
@kyliebytes Kylie Robison on x
“The companies declined to comment beyond the statement or reveal any of the revised terms.” >.<
@openainewsroom @openainewsroom on x
OpenAI started as a nonprofit, remains one today, and will continue to be one - with the nonprofit holding the authority that guides our future. As previously announced and as outlined in our non-binding MOU with Microsoft, the OpenAI nonprofit's ongoing control would now be pai…
@msftnews @msftnews on x
A joint statement from Microsoft and OpenAI https://blogs.microsoft.com/ ... https://blogs.microsoft.com/ ...
@openainewsroom @openainewsroom on x
OpenAI and Microsoft have signed a non-binding memorandum of understanding (MOU) for the next phase of our partnership. We are actively working to finalize contractual terms in a definitive agreement. Together, we remain focused on delivering the best AI tools for everyone, gro…
@ondrop Ondrej Podstupka on bluesky
Divorce papers vibes. [embedded post]
@edzitron.com Ed Zitron on bluesky
OpenAI and Microsoft have announced the they have signed a memorandum of understanding about a deal they have yet to sign, or as The Information's Martin Peers said, “something that sounds like a deal you have when you don't really have a deal.” — blogs.microsoft.com/blog/2025/…
@gnat Nat Torkington on bluesky
Microsoft and OpenAI have announced that their conscious uncoupling has progressed to the Memorandum of Understanding phase. Please respect the privacy of their children in this difficult time by not using Microsoft 365 Copilot. openai.com/index/joint-...
@mgsiegler.com M.G. Siegler on bluesky
Attention everyone: Just so you know, we have reached a tentative agreement to reach an agreement. [embedded post]
@brianfagioli Brian Fagioli on bluesky
#Microsoft and #OpenAI issue vague update on partnership talks nerds.xyz/2025/09/micr...
@tomwarren.co.uk Tom Warren on bluesky
Microsoft and OpenAI have reached a deal to revise their partnership. Neither is disclosing full details yet, as they are both “actively working to finalize contractual terms in a definitive agreement” [image]
r/wallstreetbets r on reddit
Microsoft, OpenAI reach non-binding deal to allow OpenAI to restructure
r/BetterOffline r on reddit
A joint statement from OpenAI and Microsoft
r/technews r on reddit
Microsoft ends OpenAI exclusivity in Office, adds rival Anthropic
@thezvi Zvi Mowshowitz on x
OpenAI says nonprofit will get ‘over $100 billion’ in equity as if it's some gift but that's 20% of OpenAI in exchange for... a much larger part of OpenAI plus much stronger control over OpenAI than they presumably plan here. Were they trying to give them even less before?
@stevehou0 Steve Hou on x
You need artificial super intelligence just to understand OpenAI's corporate structure.
@ronconway Ron Conway on x
Very powerful to see OpenAI announcing that they will be funding their not for profit IN EXCESS OF $100 BILLION DOLLARS. This is such a HUGE opportunity for California. To put that in perspective, it would make the nonprofit the second largest in the world (and as the company g…
@miles_brundage Miles Brundage on x
I've said this before but will just reiterate that I think the amount of money that “goes to the nonprofit” is a distraction compared to “how are decisions made on safety/security/policy advocacy etc., and by who?” The latter are quadrillion $++ scale issues, not billions.
@mihonarium Mikhail Samin on x
“This structure reaffirms that our core mission remains ensuring AGI benefits all of humanity. Our PBC charter and governance will establish that safety decisions must always be guided by this mission” What about all other decisions? What about the appointment of the CEO?
@miles_brundage Miles Brundage on x
👁️
@inafried Ina Fried on x
Breaking @axios: @OpenAI and @Microsoft reach tentative deal to revise partnership https://www.axios.com/...
@mgsiegler.com M.G. Siegler on bluesky
Some quick cap table math could be: — Microsoft: 33% — Non-Profit: 25% — SoftBank: 12% — Which nicely adds up to 70%. [embedded post]
r/business r on reddit
OpenAI says nonprofit parent will own equity stake in company of over $100 billion
r/technology r on reddit
OpenAI says nonprofit parent will own equity stake in company of over $100 billion

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