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Amazon to offer OpenAI models on AWS after Microsoft exclusivity ends

Wednesday 29 April 2026 - 07:18
By: Dakir Madiha
Amazon to offer OpenAI models on AWS after Microsoft exclusivity ends

Amazon is set to distribute OpenAI models through its cloud platform after Microsoft and OpenAI restructured their partnership, ending Microsoft’s exclusive licensing rights. The change allows OpenAI to expand its distribution across multiple cloud providers, opening direct access for Amazon Web Services customers.

Amazon chief executive Andy Jassy said the company plans to make OpenAI models available on its Bedrock platform within weeks. The rollout will also include a new Stateful Runtime Environment designed to support enterprise-grade AI applications. The announcement followed closely after confirmation that Microsoft’s exclusivity over OpenAI technology had been lifted.

The revised agreement formalizes months of negotiations. Earlier this year, Amazon and OpenAI signed a multiyear strategic deal that included a $50 billion investment and plans to co-develop infrastructure for AI workloads. Under that arrangement, AWS became the exclusive third-party cloud distributor for OpenAI Frontier, the company’s enterprise platform for building and managing AI agents. That agreement conflicted with Microsoft’s previous exclusive rights, a constraint now removed under the new structure.

Under the updated terms, Microsoft remains OpenAI’s primary cloud partner and retains a non-exclusive license through 2032. However, OpenAI can now deploy its products across competing cloud providers. Microsoft will no longer share revenue with OpenAI, though capped payments from OpenAI to Microsoft will continue until 2030. The shift reflects a broader move toward flexibility as demand for enterprise AI services accelerates.

The restructuring comes as competition intensifies in the enterprise AI market. Internal data indicates strong demand for OpenAI services through AWS, with earlier limitations seen as restricting growth. Amazon reported that its AI-related revenue within AWS reached an annualized run rate of $15 billion. OpenAI has committed to more than $100 billion in cloud spending, forming a key part of a $200 billion investment plan for 2026. The company also plans to use around two gigawatts of AWS Trainium computing capacity under the expanded infrastructure deal.

Microsoft said it will continue to support OpenAI as a major shareholder and partner, including collaboration on data centers, advanced chips, and cybersecurity systems. The announcement came ahead of Microsoft’s earnings release, with its stock briefly declining before stabilizing. OpenAI chief executive Sam Altman confirmed that the company can now offer its products across all major cloud platforms, marking a significant shift in the competitive landscape.

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