Microsoft is no longer the sole provider of data center infrastructure for OpenAI, marking a significant shift in their partnership. As part of OpenAI's massive new infrastructure deal with SoftBank, Oracle, and others, Microsoft has signed a new agreement that gives it "first right of refusal" on new OpenAI cloud computing capacity.

This means that Microsoft will have input into where OpenAI's models run and train in the cloud, but it won't have the only say. OpenAI has previously blamed a lack of available compute for delaying its products, and compute capacity has reportedly become a source of tension between the AI company and Microsoft, its close collaborator and major investor.

Despite this change, Microsoft emphasized that key elements of its longstanding partnership with OpenAI remain in place through 2030. This includes Microsoft's access to OpenAI's intellectual property, revenue sharing arrangements, and exclusivity on OpenAI's APIs. The OpenAI API is exclusive to Azure, runs on Azure, and is also available through the Azure OpenAI Service, which means customers will continue to benefit from having access to leading models on Microsoft platforms and direct from OpenAI.

OpenAI has made a new, large Azure commitment that will continue to support all OpenAI products as well as training. Microsoft has also approved OpenAI's ability to build additional capacity, primarily for research and training of models. This move is likely to provide OpenAI with more flexibility and autonomy in its operations, while also giving Microsoft a continued stake in the company's growth.

The implications of this deal are significant, as it marks a shift towards a more open and collaborative approach to AI development. By allowing OpenAI to work with multiple infrastructure providers, the company can accelerate its research and development, and potentially lead to more innovative breakthroughs in the field of artificial intelligence.

As the AI landscape continues to evolve, this deal could have far-reaching consequences for the industry as a whole. With Microsoft no longer having exclusive control over OpenAI's infrastructure, other players may be more likely to enter the market, driving competition and innovation. As the stakes continue to rise, it will be important to watch how this deal unfolds and what it means for the future of AI development.

We have reached out to OpenAI and Microsoft for more information and will update this post if we hear back.