Microsoft has adjusted its long-standing partnership with OpenAI, ending its exclusivity as the sole provider of cloud infrastructure for the artificial intelligence firm. The shift comes as OpenAI diversifies its cloud partnerships with companies like SoftBank, Oracle, and others, as part of its re
While Microsoft retains a prominent role, a new agreement grants it a “right of first refusal” on OpenAI’s future cloud computing needs. This means Microsoft will have the first opportunity to host OpenAI’s workloads but allows OpenAI to seek alternative providers if Microsoft cannot meet its requirements.
Strengthening an Evolving Partnership
Microsoft’s blog post announcing the changes highlighted that OpenAI has made a new, significant commitment to its Azure cloud services, which will continue to power OpenAI’s products and training. Additionally, Microsoft has approved OpenAI’s development of its own infrastructure capacity, particularly for research and model training purposes.
“Key elements of our partnership remain in place through 2030, including revenue-sharing arrangements, exclusivity on OpenAI APIs, and access to OpenAI’s intellectual property,” Microsoft stated.
Addressing Compute Challenges
OpenAI’s decision to expand its cloud partnerships is partly driven by increasing demands for computational power. Delays in product releases, reportedly linked to insufficient compute capacity, have strained the company’s reliance on Microsoft, despite the tech giant’s major investment and collaboration.
Earlier this year, Microsoft faced shareholder pressure to allow OpenAI to pursue a deal with Oracle for additional infrastructure. OpenAI’s new Stargate initiative further underscores its ambition to secure the resources needed for training and running advanced AI models.
Potential Implications of AGI
The partnership’s dynamics could shift further if OpenAI achieves artificial general intelligence (AGI), which the companies define as AI systems capable of generating $100 billion in profits. Under their agreement, Microsoft’s access to OpenAI’s technology would end at that milestone. Speculation suggests OpenAI might renegotiate its deal with Microsoft to secure additional funding, potentially nullifying existing terms.
Despite these adjustments, Microsoft emphasized the continued exclusivity of OpenAI’s APIs on Azure, ensuring customers can access leading AI models through its platforms.
The updated partnership reflects the rapidly evolving AI landscape, where the demands for computational power and strategic flexibility drive decisions. Both companies appear committed to their collaboration while adapting to the pressures and opportunities of an expanding AI ecosystem.
Further details from OpenAI or Microsoft have not been provided at this time.
Feb 19 (Reuters) - Microsoft, opens new tab has developed an artificial intelligence model of a videogame which can help generate visuals and actions, the company announced on Wednesday.
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Microsoft plans to invest nearly $100B in AI-enabled data centres by FY 2025, aiming to drive global innovation and maintain U.S. leadership in AI technology.
Hamas has begun releasing six more hostages from Gaza on Saturday in exchange for hundreds of Palestinian prisoners, as Israel confirmed that a body handed over earlier was that of hostage Shiri Bibas.
Kyrgyzstan and Tajikistan have reached a historic border agreement, potentially ending a century-long dispute. The deal, hailed as a breakthrough, covers delimitation, water, and infrastructure issues. If finalized, it could ease tensions and support political, economic, and social cooperation.
The U.S. and Ukraine are close to finalizing a deal granting the U.S. mineral rights in exchange for military aid, according to Wall Street Journal.
As US-Russia peace talks advance, Ukrainian President Volodymyr Zelenskyy intensifies diplomatic efforts, holding discussions with multiple world leaders to rally support for Ukraine’s sovereignty and regional security.
A tragic crowd crush at New Delhi Railway Station on Saturday night left 18 dead and 10 injured as thousands of people, many heading to the Kumbh Mela festival, attempted to board delayed trains. The incident highlights the ongoing risks of overcrowding at public transportation hubs in India.
A Delta Air Lines regional jet flipped upside down upon landing at Toronto Pearson Airport on Monday, injuring 18 people. Officials are investigating whether strong winds and snow played a role in the incident.
Berlin, February 21, 2025 – German citizens will head to the polls on Sunday, February 23, for a snap general election after the coalition government collapsed late last year.
Hamas has begun releasing six more hostages from Gaza on Saturday in exchange for hundreds of Palestinian prisoners, as Israel confirmed that a body handed over earlier was that of hostage Shiri Bibas.
Kyrgyzstan and Tajikistan have reached a historic border agreement, potentially ending a century-long dispute. The deal, hailed as a breakthrough, covers delimitation, water, and infrastructure issues. If finalized, it could ease tensions and support political, economic, and social cooperation.
The U.S. and Ukraine are close to finalizing a deal granting the U.S. mineral rights in exchange for military aid, according to Wall Street Journal.
As US-Russia peace talks advance, Ukrainian President Volodymyr Zelenskyy intensifies diplomatic efforts, holding discussions with multiple world leaders to rally support for Ukraine’s sovereignty and regional security.
Start your day informed with AnewZ Morning Brief: here are the top news stories for February 22nd, covering the latest developments you need to know.
Hamas has begun releasing six more hostages from Gaza on Saturday in exchange for hundreds of Palestinian prisoners, as Israel confirmed that a body handed over earlier was that of hostage Shiri Bibas.
Kyrgyzstan and Tajikistan have reached a historic border agreement, potentially ending a century-long dispute. The deal, hailed as a breakthrough, covers delimitation, water, and infrastructure issues. If finalized, it could ease tensions and support political, economic, and social cooperation.
The U.S. and Ukraine are close to finalizing a deal granting the U.S. mineral rights in exchange for military aid, according to Wall Street Journal.
As US-Russia peace talks advance, Ukrainian President Volodymyr Zelenskyy intensifies diplomatic efforts, holding discussions with multiple world leaders to rally support for Ukraine’s sovereignty and regional security.
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