Subj : Microsofts exclusive cloud deal with OpenAI is coming to an end
To   : All
From : TechnologyDaily
Date : Wed Jan 22 2025 10:30:07

Microsofts exclusive cloud deal with OpenAI is coming to an end

Date:
Wed, 22 Jan 2025 10:22:16 +0000

Description:
ChatGPT maker OpenAI will use other cloud infrastructure providers, but 
Microsoft retains right of first refusal.

FULL STORY
======================================================================Microsof
t is no longer OpenAIs sole cloud infrastructure provider Still OpenAIs 
biggest investor, Microsoft retains right of first refusal Project Stargate 
launched by OpenAI for US infrastructure 

Microsoft has confirmed that it is no longer the exclusive cloud provider for 
ChatGPT maker OpenAI despite plans to continue being the AI startups leading 
data center infrastructure provider. 

The company confirmed in a statement there would be changes to the 
exclusivity on new capacity, but that it would have the right of first 
refusal. 

As part of the shake-up, OpenAI has partnered with Japans SoftBank and 
Americas Oracle, among others, to support its computing needs. OpenAI splits 
its infrastructure between Microsoft and others 

Opening up the doors to other providers will mark a considerable change since 
the two companies entered into a partnership back in 2019 , more than three 
years before the public preview of ChatGPT hit the ground running. 

The key elements of our partnership remain in place for the duration of our 
contract through 2030, with our access to OpenAIs IP, our revenue sharing 
arrangements and our exclusivity on OpenAIs APIs all continuing forward," 
Microsoft confirmed. 

This means that, for at least another five years, Microsoft will have the 
rights to OpenAI models to power its Copilot AI tools . It also means that 
OpenAIs API will be exclusive to Microsofts Azure cloud computing platform. 

Following around $14 billion investment into the AI company, Microsoft 
confirmed it remains "a major investor in OpenAI. 

It also reminded OpenAI had recently made a "new, large Azure commitment" 
which will continue to support all its products, as well as training. 

On the same day, OpenAI announced details of its Stargate Project, designed 
to support new AI infrastructure in the US. SoftBank and OpenAI will be the 
lead partners for the project, with Oracle and MGX also appearing as equity 
funders  note the omission of Microsoft. 

Stargates initial technology partners will include Arm, Microsoft, NVIDIA, 
Oracle and OpenAI. 

The project will conclude with $500 billion in investments over the course of 
four years; $100 billion has already been earmarked for Stargate. You might 
also like Get a helping hand from the best AI writers around today Weve 
listed the best cloud computing services 12 Days of OpenAI ends with a new 
model for the new year



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Link to news story:
https://www.techradar.com/pro/microsofts-exclusive-cloud-deal-with-openai-is-c
oming-to-an-end


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