Satya Nadella says he’s ready to ‘exploit’ the new OpenAI deal

The first StrictlyVC of 2026 hits SF on April 30. Tickets are going fast. Register now. The first StrictlyVC of 2026 hits SF on April 30. Tickets are going fast. Register now. TechCrunch Desktop Logo TechCrunch Mobile Logo LatestStartupsVentureAppleSecurityAIApps EventsPodcastsNewsletters SearchSubmit Site Search Toggle Mega Menu Toggle Topics Latest Satya Nadella says he’s ready to ‘exploit’ the new OpenAI deal Julie Bort 4:55 PM PDT · April 29, 2026 Microsoft CEO Satya Nadella was asked point-blank by a Wall Street analyst on Wednesday how its revised OpenAI partnership would impact Microsoft’s financials. He said that the new agreement was a good deal for everyone. “We feel good about our partnership with OpenAI. I’m always very focused on any partnership and ensuring that there’s a win-win construct at all times. I mean, that’s how you can remain good partners.” He underscored that Microsoft has retained its access to OpenAI’s intellectual property — including its models and agent products — but that it no longer has to pay OpenAI for them. Referring to royalty-free access to OpenAI’s most advanced AI through 2032, Nadella said: “We have a frontier model, with all the IP rights that we will have access to all the way to ’32 and we fully plan to exploit it.” There was certainly plenty of ink spilled speculating that the new deal, in which Microsoft no longer has exclusive access to OpenAI’s tech, would cause the software giant to lose its edge in AI. OpenAI immediately announced exclusive AI products with Microsoft’s largest cloud rival, Amazon (complete with Sam Altman and AWS CEO Mark Garman doing interviews about their collaboration). But Nadella shrugged off those concerns. When Microsoft reported earnings on Wednesday — the last full quarter under the previous deal — the company reported that its AI business has surpassed an annual revenue run rate of $37 billion, up 123% year-over-year. On that point, Nadella noted that Microsoft collects money from OpenAI in other ways. “They’re 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.” Techcrunch event Meet your next investor or portfolio startup at Disrupt Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410. Meet your next investor or portfolio startup at Disrupt Your next round. Your next hire. Your next breakout opportunity. Find it at TechCrunch Disrupt 2026, where 10,000+ founders, investors, and tech leaders gather for three days of 250+ tactical sessions, powerful introductions, and market-defining innovation. Register now to save up to $410. San Francisco, CA | October 13-15, 2026 REGISTER NOW By that he’s referring to OpenAI’s commitment to buy more than than $250 billion worth of Microsoft’s cloud services, and Microsoft’s 27% stake in OpenAI. Finally, Nadella emphasized that enterprises often want to use multiple AI models, so OpenAI’s relative importance in the industry, especially to enterprises, is not as far ahead as it once was. “We 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,” he said. Time will tell if this deal is really a win-win. In the meantime, Microsoft keeps delivering cloud growth and profits. When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence. Julie Bort Venture Editor April 30 San Francisco, CA StrictlyVC kicks off the year in SF. Register now for unfiltered fireside chats and VC insights with leaders from Uber, Replit, Eclipse, and more. Plus, high-value connections that actually move the needle. Tickets are limited. Most Popular OpenAI ends Microsoft legal peril over its $50B Amazon deal Julie Bort Two college kids raise a $5.1 million pre-seed to build an AI social network in iMessage Dominic-Madori Davis Meta’s loss is Thinking Machines’ gain Connie Loizos Google to invest up to $40B in Anthropic in cash and compute Rebecca Bellan OpenAI releases GPT-5.5, bringing company one step closer to an AI ‘super app’ Lucas Ropek Microsoft offers buyout for up to 7% of US employees Amanda Silberling Surveillance vendors caught abusing access to telcos to track people’s phone locations, researchers say Lorenzo Franceschi-Bicchierai X LinkedIn Facebook Instagram youTube Mastodon Threads Bluesky TechCrunchStaffContact UsAdvertiseCrunchboard JobsSite Map Terms of ServicePrivacy PolicyRSS Terms of UseCode of Conduct Tim CookJohn TernusNew GlennWhatsAppMythosTech LayoffsChatGPT © 2026 TechCrunch Media LLC.