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 Matt 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.