Microsoft and OpenAI might have a complicated relationship with odd clauses such as the arrival of AGI determining financial deals between the two parties, but Microsoft CEO Satya Nadella is unequivocal that his company has access to all AI-related IP created by OpenAI.
In a candid exchange on the Dwarkesh podcast with SemiAnalysis’ Dylan Patel, Nadella revealed the extraordinary depth of Microsoft’s access to OpenAI’s intellectual property—a revelation that sheds new light on one of the most consequential partnerships in the technology industry. When pressed by Patel about the extent of Microsoft’s IP access, Nadella’s responses were notably direct, confirming that the software giant has rights to virtually everything OpenAI creates, with one notable exception.
“In our case, the good news here is OpenAI has a program which we have access to (AI developments), and so therefore to think that Microsoft is not going to have something that’s—” Nadella began, before Patel interjected with a pointed question.
“What level of access do you have to that?” Patel asked.
“All of it,” Nadella responded.
“You just get the IP for all of that?” Patel pressed further.
“Yeah, absolutely,” Nadella confirmed.
“So the only IP you don’t have is consumer hardware?” Patel sought to clarify.
“That’s it,” Nadella said.
The Microsoft CEO then elaborated on the reciprocal nature of the partnership, explaining that the relationship has been mutually beneficial from its inception. “Yeah, and by the way, we gave them a bunch of IP as well to bootstrap them. So this is one of the reasons why they had a massive (advantage) —because we built all these supercomputers together or we built it for them, and they benefited from it rightfully so.”
Implications of an Unprecedented Partnership
This revelation underscores the depth of integration between Microsoft and OpenAI, and explains why Microsoft has been so aggressive in its AI investments despite not directly controlling the research lab. The partnership, which began with a modest $1 billion investment in 2019, has evolved into a multibillion-dollar commitment, with Microsoft investing an additional $10 billion in early 2023 as OpenAI’s ChatGPT captured global attention. The company has invested a further $13 billion throughout the partnership, making it one of the largest bets in tech history.
Most recently, in October 2025, Microsoft and OpenAI signed a new agreement that further solidified their partnership. Microsoft now has a 27% ownership stake in OpenAI’s for-profit entity. It also has access to OpenAI’s technology and models, including future AGI developments, through 2032. This also includes chip and hardware research until 2030.
However, the relationship hasn’t been without friction. Reports had emerged that OpenAI’s planned acquisition of Windsurf, an AI coding startup, was called off due to disagreements between Microsoft and OpenAI, suggesting that the boundaries of their partnership—particularly around competitive positioning—remain a source of contention.
What’s clear from Nadella’s comments is that Microsoft has effectively secured a hedge against any scenario where it might be cut off from frontier AI development. For the foreseeable future, Microsoft would retain access to OpenAI’s core technologies, giving it the ability to continue building and deploying AI products independently. This strategic insurance policy, combined with Microsoft’s own substantial AI research capabilities, positions the company as a formidable force in the AI race regardless of how the OpenAI relationship evolves.
The exchange offers a rare glimpse into the mechanics of big tech’s AI gold rush, where access to cutting-edge models and the intellectual property behind them has become the most valuable currency in the industry.