"OpenAI and Microsoft Forge Enhanced Partnership with Focus on Innovation and Growth"

"OpenAI and Microsoft have updated their partnership, maintaining OpenAI as Microsoft's frontier model partner while introducing new provisions for independent innovation and growth. OpenAI gains rights to collaborate with third parties, provide API access to US government security customers, and release open weight models. OpenAI will also purchase $250 billion in Azure services, while Microsoft loses its exclusive compute provider rights. OpenAI continues to expand its AI infrastructure through partnerships with AMD, Oracle, Google Cloud, and SoftBank."

Sullivan & Cromwell LLP (S&C) advised OpenAI, while Microsoft was assisted by its own legal team, in a significant transaction that builds upon and refines their existing partnership. The transaction ensures OpenAI remains Microsoft’s frontier model partner while introducing new provisions that allow both companies to independently advance innovation and growth. Key elements of the agreement include OpenAI’s rights to jointly develop products with third parties, provide API access to US government national security customers, and release open weight models meeting specific capability criteria. OpenAI also committed to purchasing an additional $250 billion of Azure services, and Microsoft relinquished its right of first refusal to be OpenAI’s compute provider. The S&C team advising OpenAI included Nader Mousavi, a partner specializing in intellectual property and technology transactions, and Mark Schenkel, a special counsel focusing on technology and intellectual property matters.

"OpenAI and Microsoft Forge Enhanced Partnership with Focus on Innovation and Growth"

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