Microsoft Loses Exclusive Cloud Provider Status with OpenAI Amid $500 Billion Joint Venture with Oracle, SoftBank

Jan 21, 2025, 11:30 PM

Microsoft Corp. has announced a shift in its partnership with OpenAI, moving away from being the exclusive cloud provider for the AI company. Under the new agreement, Microsoft retains a 'right of first refusal' on new OpenAI cloud computing capacity, allowing OpenAI to seek alternative cloud providers if Microsoft cannot meet its needs. This change coincides with OpenAI's announcement of a $500 billion joint venture with Oracle and SoftBank Group Corp. to build cloud computing data centers in the U.S. The partnership between Microsoft and OpenAI, which extends through 2030, continues to include Microsoft's access to OpenAI's intellectual property, revenue sharing arrangements, and exclusivity on OpenAI's APIs, which remain exclusive to Microsoft's Azure platform.