Microsoft is letting OpenAI have its own AI computation now

Microsoft and OpenAI Announced Tuesday They modified their partnership so that OpenAI could access competitors’ accounts.

Microsoft says the new agreement “includes changes to exclusivity over new capacity, and a move to a model in which Microsoft has the right of first refusal (ROFR).” “To further support OpenAI, Microsoft has approved OpenAI’s ability to build additional capabilities, primarily for research and model training.”

The basis of their relationship (which lasts through 2030) remains largely the same — Microsoft retains exclusive rights to the OpenAI technology for products like Copilot, and the OpenAI API remains exclusive to Azure. They will maintain the two-way revenue sharing setup (it has been). I mentioned Microsoft will receive 20 percent of OpenAI revenue. Before today’s change, OpenAI was restricted to using Microsoft’s Azure cloud infrastructure exclusively for its computing needs.

The models that OpenAI hopes to build and the user base it looks to serve will require billions of dollars of computing. it has been I mentioned previously Some OpenAI shareholders felt that Microsoft wasn’t moving fast enough to provide OpenAI with computing power, which is why the startup started… It partnered with Oracle back in June (With Microsoft’s blessing) to perform the necessary calculation.

There has been a lot of buzz about Microsoft and OpenAI facing relationship issues after OpenAI CEO Sam Altman was briefly fired from the company, causing a lot of public drama. New York Times I mentioned The relationship has become increasingly strained due to financial pressures at OpenAI, concerns about stability, and growing friction between employees at both companies.

last march, Microsoft has appointed Inflection CEO Mustafa Suleiman to lead its consumer AI efforts, along with most of Inflection’s employees, in a $650 million deal. according to New York Times According to the report, the move particularly angered some OpenAI leaders, including Altman.

OpenAI’s deal with Microsoft as well He has an unusual escape condition: If OpenAI creates artificial general intelligence (AGI), it could deny Microsoft access to some of its most powerful models developed after that point. Artificial general intelligence (AGI) is said to be defined as a system capable of Generating more than $100 billion In profits. This was originally intended to prevent the commercialization of such powerful AI, but now OpenAI is It is said Considering dropping this provision would likely secure more funding for Microsoft.