Microsoft used to be the exclusive provider of data center infrastructure for OpenAI to train and run its AI models. Not anymore.
Coinciding with the announcement of Stargate, OpenAI’s massive AI infrastructure deal with SoftBank, Oracle and others, Microsoft says it has signed a new agreement with OpenAI that gives it a “right of first refusal” on the capacity of new OpenAI cloud computing. This means that, going forward, Microsoft has first choice on whether to host OpenAI’s AI workloads in the cloud – but if Microsoft can’t meet its needs, OpenAI could go to a rival cloud provider .
“OpenAI recently made a new, major Azure commitment that will continue to support all OpenAI products as well as training,” Microsoft said in a blog post. “To further support OpenAI, Microsoft has approved OpenAI’s ability to build additional capabilities, primarily for research and model training.”
OpenAI has blamed a lack of available computing for the delay in its products, and computing capacity has reportedly become a source of tension between the AI company and Microsoft, its close collaborator and major investor. In June, Microsoft, under pressure from shareholders, allowed OpenAI to strike a deal with Oracle for additional capacity.
In the latest post, Microsoft reiterated that “key elements” of its long-standing partnership with OpenAI remain in place until 2030, including its access to OpenAI IP, revenue-sharing agreements and exclusivity on APIs of OpenAI.
This assumes, of course, that OpenAI does not achieve artificial general intelligence (AGI) according to the definition previously agreed upon by the two companies. When OpenAI develops AI systems that can generate at least $100 billion in profits, Microsoft will lose access to the company’s technology, according to a reported agreement between the firms.
OpenAI is reportedly considering canceling the deal in a possible attempt to secure more Microsoft funding.
“The OpenAI API is exclusive to Azure, runs on Azure, and is also available through the Azure OpenAI Service,” the blog post said. “This agreement means customers benefit from access to key models on Microsoft platforms and directly from OpenAI.”
We’ve reached out to OpenAI and Microsoft for more information and will update this post if we hear back.
