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Microsoft and OpenAI have once again renegotiated the terms of their deal with one another, but it might be what's best for both of them. OpenAI and Microsoft have announced an end to their exclusive arrangement, and a re-jigging of how they handle model oversight, revenue sharing, and cloud deployments. Microsoft will no longer pay OpenAI for what it makes from Copilot, but OpenAI no longer has to exclusively use Azure servers for ChatGPT, opening it up for further deals with other cloud service providers.

What this means for the ever-nebulous AGI clause that both companies were so keen to retain access to and control over, if and when it materializes, remains to be seen.…