In a significant shift, Microsoft, the largest investor in OpenAI and its key cloud partner, is no longer the exclusive provider of computing capacity for the artificial intelligence startup.
While the tech giant still maintains a strong relationship with OpenAI, it revealed in a blog post on Tuesday that OpenAI will now have the ability to seek additional computing capacity from other providers. Microsoft, however, retains a “right of first refusal,” meaning it can match offers from competitors before OpenAI looks elsewhere.
The announcement coincided with former President Donald Trump’s unveiling of the Stargate Project, a massive AI infrastructure initiative involving OpenAI, Oracle, and SoftBank. The joint venture, set to invest up to $500 billion over four years, aims to bolster AI infrastructure across the United States. Oracle, Arm, Microsoft, and Nvidia are named as key technology partners for the project, with the first data centers already under construction in Abilene, Texas. Oracle Chairman Larry Ellison described the facilities as “half a million square feet” each, with plans to expand to 20 buildings and additional locations.
Oracle’s involvement signals its growing role in the AI and cloud space, reflected in a 7% jump in its stock price on Tuesday. The company has been working to strengthen ties with other tech giants, announcing last year that Microsoft’s Azure AI platform would integrate with Oracle’s cloud offerings.
Microsoft’s deep ties with OpenAI date back to 2019, when it invested $1 billion and committed to hosting OpenAI’s services on its Azure platform. As OpenAI’s computing needs have grown, Microsoft supplemented its Azure infrastructure by contracting third-party providers, such as CoreWeave. Oracle joined the partnership last year as OpenAI’s requirements expanded further.
Despite these changes, Microsoft retains exclusive access to OpenAI’s application programming interface (API) and rights to its intellectual property for use in products like Copilot. OpenAI also recently made a “new, large Azure commitment” to support its products and training efforts, Microsoft said.
However, cracks in the relationship have emerged. In July, Microsoft listed OpenAI as a competitor, and CEO Satya Nadella recently acknowledged the tension between the companies’ ambitions during a podcast interview. “What [OpenAI CEO Sam Altman] wants to do, I have to accommodate for… And he needs to accommodate for the discipline that we need on our end,” Nadella said.
In a statement, Microsoft emphasized its commitment to the partnership, noting that the collaboration remains in place through 2030 and includes revenue-sharing agreements, continued access to OpenAI’s IP, and exclusivity on APIs. The company also expressed enthusiasm for working with OpenAI on the Stargate Project, which promises to reshape the AI landscape in the years ahead.
