\n<\/p>\n
Microsoft CEO Satya Nadella was asked point-blank by a Wall Street analyst on Wednesday how its revised OpenAI partnership would impact Microsoft\u2019s financials.<\/p>\n
He said that the new agreement was a good deal for everyone. \u201cWe feel good about our partnership with OpenAI. I\u2019m always very focused on any partnership and ensuring that there\u2019s a win-win construct at all times. I mean, that\u2019s how you can remain good partners.\u201d<\/p>\n
He underscored that Microsoft has retained its access to OpenAI\u2019s intellectual property \u2014 including its models and agent products \u2014 but that it no longer has to pay OpenAI for them.<\/p>\n
Referring to royalty-free access to OpenAI\u2019s most advanced AI through 2032, Nadella said: \u201cWe have a frontier model, with all the IP rights that we will have access to all the way to \u201932 and we fully plan to exploit it.\u201d<\/p>\n
There was certainly plenty of ink spilled speculating that the new deal, in which Microsoft no longer has exclusive access to OpenAI\u2019s tech, would cause the software giant to lose its edge in AI. OpenAI immediately announced exclusive AI products with Microsoft\u2019s largest cloud rival, Amazon (complete with Sam Altman and AWS CEO Mark Garman doing interviews about their collaboration).<\/p>\n
But Nadella shrugged off those concerns. When Microsoft reported earnings on Wednesday \u2014 the last full quarter under the previous deal \u2014 the company reported that its AI business has surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.<\/p>\n
On that point, Nadella noted that Microsoft collects money from OpenAI in other ways. \u201cThey\u2019re a large customer of ours, not just on the AI accelerator side, but also on all the other compute sides. And so we want to serve them well. And then, of course, we have our equity.\u201d<\/p>\n
Techcrunch event<\/p>\n
\n\t\t\t\t\t\t\t\t\tSan Francisco, CA<\/span> By that he\u2019s referring to OpenAI\u2019s commitment to buy more than than $250 billion worth of Microsoft\u2019s cloud services, and Microsoft\u2019s 27% stake in OpenAI.<\/p>\n Finally, Nadella emphasized that enterprises often want to use multiple AI models, so OpenAI\u2019s relative importance in the industry, especially to enterprises, is not as far ahead as it once was.<\/p>\n \u201cWe offer the broadest selection of models of any hyperscaler, so customers can choose the right model for the right workload across OpenAI, Anthropic, open source, and more. Over 10,000 customers have used more than one model,\u201d he said.<\/p>\n Time will tell if this deal is really a win-win. In the meantime, Microsoft keeps delivering cloud growth and profits.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n