Yesterday in AI: 27 April 2026 — OpenAI Drops Azure Lock-In; China Kills $2B Deal

OpenAI ended its exclusive cloud pact with Microsoft, China forcibly unwound a $2 billion acquisition Meta had already closed, and DeepSeek slashed its flagship API prices 75% — three restructurings that redrew the competitive landscape of AI before markets closed on April 27. OpenAI Cuts the Azure Cord After Six Years Microsoft and OpenAI announced a restructured partnership that strips Microsoft of its exclusive right to distribute OpenAI’s models and IP. Under the new terms, OpenAI can now supply its full product lineup to any cloud provider — including Amazon and Google — while Azure retains "first right of deployment" for new releases. Microsoft’s license runs through 2032 but is now explicitly non-exclusive. Financial terms shifted too: Microsoft stops paying revenue share to OpenAI, and OpenAI’s payments to Microsoft are capped and expire in 2030 regardless of AGI milestones. Analysts noted the deal removes a major antitrust target in the UK, EU, and US, where regulators had flagged the tie-up as potentially anti-competitive. Microsoft shares slipped briefly before recovering. Sources: Microsoft Bloghttps://blogs.microsoft.com/blog/2026/04/27/the-next-phase-of-the-microsoft-openai-partnership/ — Bloomberghttps://www.bloomberg.com/news/articles/2026-04-27/microsoft-to-stop-sharing-revenue-with-main-ai-partner-openai — CNBChttps://www.cnbc.com/2026/04/27/openai-microsoft-partnership-revenue-cap.html Beijing Vetoes a Deal Meta Already Closed China’s National Development and Reform Commission on April 27 ordered the cancellation of Meta’s $2 billion acquisition of Manus — notable because Meta had already completed the transaction in late 2025 and integrated Manus engineers into its org chart. Manus, founded in China and legally headquartered in Singapore, went viral in March 2025 for an autonomous AI agent that could book flights, write code, and draft legal documents. The NDRC cited "protection of national technological interests" without elaboration. Met