OpenAI and Microsoft Forge New Partnership Agreement Amidst Shifting AI Landscape
SAN FRANCISCO, CA – September 11, 2025 – OpenAI and Microsoft today announced a non-binding memorandum of understanding (MOU) to revise their existing partnership, signaling a recalibration of their relationship as both companies navigate an increasingly competitive artificial intelligence market. The agreement comes as OpenAI seeks to restructure its corporate form and address growing tensions related to infrastructure needs and future access to its technology.
The MOU outlines a framework for the next phase of collaboration, with both companies actively working to finalize definitive contractual terms. “Microsoft and OpenAI have signed a non-binding memorandum of understanding (MOU) for the next phase of our partnership,” the companies stated in a joint release.”We are actively working to finalize contractual terms in a definitive agreement. Together, we remain focused on delivering the best AI tools for everyone, grounded in our shared commitment to safety.”
The partnership has evolved significantly since Microsoft first invested over $13 billion in OpenAI starting in 2019. Initially a research collaboration, the relationship has become strained as OpenAI has matured into a $500 billion valuation and begun directly competing with Microsoft for customers. OpenAI has also sought additional compute capacity beyond what Microsoft currently provides, recently signing a deal with Google Cloud despite the companies’ fierce rivalry.
Complicating matters are provisions within the existing agreement that could limit Microsoft’s access to OpenAI technology upon the achievement of Artificial General Intelligence (AGI), currently defined by both companies as AI systems capable of generating at least $100 billion in profit.
This announcement follows OpenAI’s earlier decision in May to abandon a full conversion to a for-profit structure following substantial opposition from former employees, regulators, and critics, including a lawsuit filed by Elon Musk. Musk argues the shift would violate OpenAI’s original nonprofit mission to benefit humanity.
