The OpenAI-Microsoft Partnership

For one thing, Stargate has shown the unraveling of Microsoft and OpenAI’s partnership.

The partnership between Microsoft and OpenAI is undergoing significant changes, with Microsoft no longer serving as OpenAI’s exclusive cloud provider.

OpenAI now has the flexibility to collaborate with other providers, enabled by its Stargate infrastructure deal with SoftBank, Oracle, and others.

Despite this shift, Microsoft retains the “right of first refusal,” allowing it to prioritize hosting OpenAI’s workloads before competitors.

Key aspects of the partnership remain intact, including OpenAI’s continued use of Azure for products and training under a long-term agreement lasting through 2030.

However, the agreement includes an AGI clause, where Microsoft’s exclusive access to OpenAI’s technology would terminate if OpenAI achieves artificial general intelligence (AGI), generating $100 billion in profits.

This evolution opens the door for potential renegotiations, as OpenAI may seek additional funding from Microsoft.

The Stargate initiative signals a broader strategy for OpenAI to diversify its infrastructure and expand its research and model-training capabilities while maintaining a collaborative relationship with Microsoft.

In the meantime, OpenAI tries to keep its dominant consumer position with its agentic move, but for the consumer.

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