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The OpenAI logo at the company’s 2023 developer conference. (GeekWire File Photo / Todd Bishop)
Microsoft will no longer be the exclusive provider of new cloud computing capacity to OpenAI — a new twist in their relationship that clears the way for OpenAI to work with Oracle and others on the $500 billion Stargate AI project announced by the companies Tuesday with President Trump at the White House.
In a blog post, Microsoft sought to downplay the implications of the change, saying that the core aspects of its role as an investor and partner in the ChatGPT maker are the same. That includes its exclusive on the OpenAI API in Microsoft Azure, and its right to use OpenAI technology in products including Microsoft Copilot.
The change in their relationship gives Microsoft the right of first refusal, rather than outright exclusivity, to provide new AI and cloud capacity to OpenAI. It comes as part of “a new, large Azure commitment that will continue to support all OpenAI products as well as training,” the Microsoft post says.
“This new agreement also includes changes to the exclusivity on new capacity, moving to a model where Microsoft has a right of first refusal (ROFR),” it continues. “To further support OpenAI, Microsoft has approved OpenAI’s ability to build additional capacity, primarily for research and training of models.”
The Stargate project is a joint venture between OpenAI, Oracle, and SoftBank to create new AI infrastructure in the United States.
OpenAI CEO Sam Altman, Oracle founder Larry Ellison, and SoftBank CEO Masayoshi Son announced the new joint venture with President Trump on Tuesday, the first full day of his second term in office.
The initial investment will be $100 billion, with plans to reach $500 billion over the next four years. This would make it the largest AI infrastructure project in history. Microsoft, Nvidia and Arm are also technology partners.
OpenAI has an equity stake, governance rights, and operational control in Stargate venture, Reuters reports, citing a person familiar with the deal.
