Microsoft will no longer be the exclusive provider of new cloud computing capacity to OpenAI — a new twist in their relationship that clears the way for OpenAI to work with Oracle and others on the $500 billion Stargate AI project announced by the companies Tuesday with President Trump at the White House.
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The software giant was previously the exclusive cloud provider for OpenAI and now retains right of first refusal.
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Microsoft won’t be the sole cloud provider for OpenAI but can decide whether to deliver the company with capacity or allow another party to fill the need.
Microsoft Azure offers a suite of cloud computing services with a competitive pay-as-you-go pricing model. Some services can even be used for free.
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Cloud computing enables companies to store their infrastructures remotely using the Internet, ultimately reducing costs and creating value.
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The new agreement “includes changes to the exclusivity on new capacity, moving to a model where Microsoft has a right of first refusal (ROFR),” Microsoft says. “To further support OpenAI, Microsoft has approved OpenAI’s ability to build additional capacity, primarily for research and training of models.”
SandboxAQ, a quantum computing startup spun off from Alphabet, announced that its Large Quantitative Models (LQMs) are now available on Google Cloud.