Microsoft’s exclusive cloud deal with OpenAI is coming to an end

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Microsoft is no longer OpenAI’s sole cloud infrastructure provider
Still OpenAI’s 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 startup’s 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 Japan’s SoftBank and America’s 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 OpenAI’s IP, our revenue sharing arrangements and our exclusivity on OpenAI’s 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 OpenAI’s API will be exclusive to Microsoft’s 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.

Stargate’s 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.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!