Here is what moved in AI on May 1, 2026. For the full month's coverage, see our AI News May 2026 hub.
OpenAI and Microsoft End Exclusive Partnership
On April 27, 2026, Microsoft and OpenAI restructured their deal. Microsoft ends its Azure revenue share to OpenAI. OpenAI retains a capped 20% payment to Microsoft through 2030 and keeps a non-exclusive IP license through 2032. OpenAI can now sell products on Amazon Web Services and Google Cloud — ending the 2019 exclusivity arrangement that had restricted its distribution.
Amazon's Andy Jassy confirmed OpenAI models are coming to Bedrock. The shift resolves tension from OpenAI's February announcement of up to $50 billion from Amazon.
OpenAI Smartphone in Development — MediaTek and Qualcomm Involved
Analyst Ming-Chi Kuo reported on April 27 that OpenAI may be building a smartphone with MediaTek and Qualcomm developing a custom chip, and Luxshare handling manufacturing. The device would replace traditional apps with AI agents that maintain continuous context via on-device and cloud models. Specs are expected by Q1 2027, with mass production targeted for 2028. OpenAI has not commented.
Google: AI Overviews Reshaping Search Query Behavior
Google's head of search said users are submitting longer, more detailed queries as AI Overviews lower the effort required to search. AI Overviews are selectively deployed based on perceived value, with efforts to preserve high-quality clicks. Query volume is expanding overall. Google expects search, chat, and apps to coexist as separate interfaces rather than converge.
Full May 2026 AI news coverage: AI News May 2026 — All Releases and Announcements