Microsoft loses OpenAI exclusive cloud provider status | Real Time Headlines

MicrosoftOpenAI’s largest investor and its main cloud partner are losing their status as the exclusive supplier of computing power to the artificial intelligence startup.

in a blog post On Tuesday, Microsoft said it remains in a strong position with OpenAI. Going forward, when OpenAI seeks additional capacity, Microsoft will have “right of first refusal” before OpenAI negotiates with other parties.

The changes in their relationship are revealed as President Donald Trump’s announcement stargate projecta joint venture with OpenAI, Oracle SoftBank will invest billions of dollars in artificial intelligence infrastructure in the United States, with executives from the companies committing to an initial investment of $100 billion in the project and up to $500 billion over the next four years, which will be established as an independent company .

Oracle is ‘key initial technology partner’ armMicrosoft and NVIDIA In terms of setting up data center infrastructure, OpenAI said in a report blog post.

Oracle chairman says: ‘Data centers are actually being built’ Larry Ellison said at a press conference at the White House with Trump. “The first building is under construction in Texas. Each building is 500,000 square feet. Currently 10 buildings are under construction but will expand to 20 and other locations outside of Abilene, which is our first building location .

Oracle stock It rose 7% on Tuesday.

In 2019, three years before the launch of ChatGPT, Microsoft invested $1 billion in OpenAI and committed to migrating the service to Azure. As OpenAI’s computing needs expand, Microsoft has signed contracts with third-party cloud providers such as CoreWeave to supplement its Azure cloud infrastructure.

Oracle I joined the ranks last year. Database software manufacturer, AmazonMicrosoft and Google In the cloud market, it means June Microsoft’s Azure artificial intelligence platform will expand to Oracle’s cloud.

OpenAI said on Tuesday it will continue to increase Azure consumption, and Microsoft said OpenAI has recently made “new, large-scale Azure commitments” for products and model training. Microsoft still owns the intellectual property rights to OpenAI, which can be applied to products such as Copilot. And it still has exclusive rights to provide compute requests for OpenAI’s application programming interface.

But there are already signs of tension in the relationship, with Microsoft naming OpenAI competitors July. Microsoft CEO Satya Nadella On OpenAI CEO Sam Altman’s lofty ambitions podcast The project, in partnership with investors Brad Gerstner and Bill Gurley, was released in December.

“What he wants to do, I have to adapt so that he can do what he does,” Nadella said. “He needs to adapt to the discipline that we need given the overall constraints that we may face.”

watch: President Trump discusses investment in artificial intelligence infrastructure