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Bloomberg Tech is live from coast to coast, with Caroline Hyde in New York and Ed Lovelow in San Francisco.

This is Bloomberg Tech. Coming up, Microsoft and Open AI have agreed to drop exclusivity rights on AI

opening the doors for rivals to make new deals. Plus, China blocks Meta's $2 billion deal for

AI startup Manus in a surprise move that unwinds

a controversial deal.

And Elon Musk and Sam Altman head to court with the Tesla CEO alleging that the Open

AI founder abandoned its founding mission.

Let's get to our top story of the day, and this is an interesting one.

Microsoft shares are now basically flat,

but when news hit that they had ended their exclusivity pact with Open AI, the stock was down

4% in pre-market. Amazon shares shot up on the logic. It would benefit. All of that has been

undone. It is a complicated story. Bloomberg's Brody Ford joins us on set in San Francisco.

The bits that are new are there are changes in the structure of the agreement between Microsoft and Open AI.

Let's start there. What do we need to know? What can Open AI now do that it couldn't do 24 hours ago?

So the big headline of what has changed is that the OAI models for a long time were exclusive

on Microsoft Azure.

And that was really kind of the last bit of exclusivity in this storied partnership that helped

usher in the AI era that now is kind of going away.

And so this is meaningful for Open AI because they're in a world where compute is constrained.

They need as much as they can get.

And they want to be able to distribute their products onto all the major platforms.

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